US LNG exporting giant Cheniere said it has signed a binding 20-year LNG supply deal with Chinese independent gas firm Foran Energy.
The SPA follows a heads of agreement signed between units of Cheniere and Foran in November of 2020.
Under the deal, Foran has agreed to buy about 0.3 million tonnes per annum of LNG from Cheniere Marketing on a delivered ex-ship basis for a term of 20 years beginning in January 2023.
Also, the Henry Hub-linked LNG deal would include a fixed liquefaction fee, Cheniere said in a statement on Wednesday.
This new contract adds to four LNG supply deals Cheniere revealed in the last couple of months. These include contracts with France’s Engie, China’s Sinochem Group, Glencore, and a unit of Chinese independent gas distributor ENN.
Cheniere’s chief executive Jack Fusco said this long-term LNG solution supports Foran’s goals and provides additional supply as China continues to seek “cleaner, lower-carbon natural gas to meet its economic and environmental goals.”
“This SPA once again demonstrates the strength of the global LNG market today, particularly in China, and underscores the value of Cheniere’s leading ability to tailor solutions to help our customers advance their long-term energy and environmental priorities,” he said.
Fusco previously said that Cheniere expects to take a final investment decision on the Corpus Christi Stage 3 project next year.
The Corpus Christi project would include up to seven mid-scale liquefaction trains with a total expected nominal production capacity of about 10 mtpa.
Located in Texas, the Corpus Christi liquefaction plant currently consists of three operational trains with each having a capacity of about 5 mtpa.