Cheniere signs long-term LNG deal with China's Foran Energy
Cheniere Energy, a Houston-based LNG company, announced on November 2 that it has signed a long-term LNG supply deal with China's Foran Energy Group Co.
Under the agreement, Foran will purchase approximately 0.9mn tonnes/year of LNG for 20 years on a free-on-board basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries will commence upon the start of commercial operations of the second train (Train 8) of the Sabine Pass liquefaction (SPL) expansion project in Louisiana, which is subject to a positive final investment decision.
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“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,” said Jack Fusco, Cheniere’s CEO.
In 2021, the two companies signed a 20-year deal for the supply of 0.3mn tonnes/year of LNG.
The SPL expansion project is being developed for up to approximately 20mn tonnes/year of LNG capacity. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the US Gulf Coast, with total production capacity of approximately 45mn tonnes/year of LNG in operation and an additional 10mn tonnes/year of expected production capacity under construction.