Chinese gas firm Foran Energy said it plans to buy liquefied natural gas from US LNG exporter Cheniere under a new long-term deal.
The firm said in a statement that its board of directors has approved the signing of a 20-year LNG SPA with Cheniere Marketing, a unit of Cheniere.
According to Foran, the firm plans to purchase about 0.86 million tons of LNG per year on a FOB basis and the supply is expected to begin from 2028.
Foran said the Henry Hub-linked LNG deal will also include a liquefaction fee.
It did not say when the two firms will sign the 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.
Cheniere operates two LNG export terminals and is the largest LNG exporter in the US.
The company’s Sabine Pass plant currently has a capacity of about 30 mtpa following the launch of the sixth train in February last year.
In February this year, Cheniere initiated the pre-filing review process with the US FERC for the proposed Sabine Pass Stage 5 expansion project with a capacity of some 20 mtpa.
On the other hand, Cheniere’s Corpus Christi liquefaction plant consists of three operational trains with each having a capacity of about 5 mtpa.
In June last year, Cheniere took a final investment decision on the Corpus Christi Stage 3 expansion project worth about $8 billion and officially started construction on the project in October.
The project includes building seven midscale trains, each with an expected liquefaction capacity of about 1.49 mtpa.
Cheniere is expecting to complete the expansion phase at its Corpus Christi plant ahead of schedule.