Cheniere seals 20-year LNG supply deal with China’s Foran

US LNG exporting giant Cheniere has entered into a 20-year liquefied natural gas (LNG) supply deal with China’s Foran Energy.

Under the SPA, Foran has agreed to buy about 0.9 million tonnes per annum (mtpa) of LNG for 20 years from Cheniere Marketing on a free-on-board basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee.

Cheniere said in a statement that deliveries would begin upon the start of commercial operations of the second train (train eight) of the Sabine Pass expansion project in Louisiana

The start of deliveries remains subject to, among other things, a positive final investment decision with respect to the Sabine Pass train.

Last week, Chinese gas firm Foran Energy announced it plans to buy LNG from Cheniere but the firm did not say when it expects to sign the 20-year SPA.

Back in 2021, Cheniere signed a binding 20-year LNG supply deal with Foran.

Under this deal, Foran has agreed to buy about 0.3 mtpa of LNG from Cheniere Marketing on a delivered ex-ship basis for a term of 20 years beginning in January 2023.

First contract for second Sabine Pass expansion train

“We are pleased to build upon our existing long-term relationship with Foran, one of the fastest growing natural gas companies in China, with the signing of our second 20-year SPA that secures increased LNG volumes for Foran for the long term,” Jack Fusco, Cheniere’s president and CEO, said.

“This 20-year SPA further supports China’s commitment to growing natural gas as a primary energy source and provides Foran with a flexible and reliable LNG solution for its operations,” he said.

Fusco added that the SPA is also expected to support the SPL expansion project, and represents the first contract signed in connection with the project’s second train.

Sabine Pass currently has a capacity of about 30 mtpa following the launch of the sixth train in February last year, while Cheniere’s three-train Corpus Christi plant in Texas can produce about 15 mtpa of LNG and is undergoing expansion.

Earlier this year, Cheniere initiated the pre-filing review process with the US FERC for the Sabine Pass Stage 5 expansion project.

The project will include up to three large-scale liquefaction trains, each with a production capacity of about 6.5 mtpa of LNG, a boil-off-gas (BOG) re-liquefaction unit with a production capacity of 0.75 mtpa of LNG, and also two 220,000-cbm LNG storage tanks.

Most Popular

McDermott bags Monkey Island LNG gig

Houston-based McDermott has secured a contract from Monkey Island LNG for its planned natural gas liquefaction facility in Cameron Parish, Louisiana.

Gazprom supplying gas from Kaliningrad FSRU

Gas giant Gazprom has completed tests at its 174,000-cbm FSRU Marshal Vasilevskiy off Russia's Kaliningrad, located between Lithuania and Poland. The firm said...

GTT develops new LNG fuel tank

French LNG containment giant GTT has developed a new cubic-shaped LNG fuel tank for commercial vessels, with a particular focus on LNG-fueled container vessels.

More News Like This

Cheniere clinches Botas LNG supply deal

Turkiye’s state-owned natural gas and LNG firm Botas has signed a deal to buy liquefied natural gas from US LNG exporting giant Cheniere. Botas also signed deals with SEFE, Equinor, and jera.

Cheniere’s Corpus Christi expansion project almost 88 percent complete

The Stage 3 expansion project at Cheniere’s Corpus Christi LNG export plant in Texas is almost 88 percent complete, while Cheniere has also started site preparation activities for two more midscale trains.

Trafigura, Kogas seal long-term US LNG supply deal

LNG trader Trafigura has signed a long-term deal to supply US LNG to South Korean importer Kogas.

Cheniere nears first LNG at third Corpus Christi expansion train

US LNG exporter Cheniere is nearing the start of LNG production at the third train of the Corpus Christi Stage 3 expansion project in Texas as part of the commissioning phase.