Cheniere pens LNG supply deal with China's ENN

Cheniere Energy has signed a 20-year LNG supply agreement with China’s ENN, the company announced on June 26. Under the agreement, ENN will purchase approximately 1.8mn metric tons/year of LNG from Cheniere Marketing on a free-on-board (FOB) basis, starting in mid-2026.

The purchase price will be indexed to the Henry Hub price, with a fixed liquefaction fee. The deliveries will ramp up to 0.9mn mt/yr in 2027. The remaining 0.9mn mt/yr is contingent on a positive final investment decision for the first train of the  Sabine Pass Liquefaction (SPL) Expansion Project.

Once Train Seven is operational, the delivery of the remaining LNG will commence. The agreement has a term that extends until the 20th anniversary of the start of commercial operations of Train Seven.

This agreement is the second long-term agreement signed between ENN and Cheniere Marketing, with the first agreement initiated in October 2021.

The SPL Expansion Project is being developed to include up to three trains with a total production capacity of about 20mn tonnes. Cheniere entered the pre-filing process at the Federal Energy Regulatory Commission (FERC) earlier this year, targeting a construction start in Q4 2025, and all three trains are expected to be in commercial service in the second half of 2032, although individual trains could be commissioned earlier.