Cheniere inks LNG deal with China’s Foran
US LNG company Cheniere Energy said November 24 it had signed a 20-year sale and purchase agreement with China’s Foran Energy for deliveries of US-sourced LNG.
The 20-year sale and purchase agreement (SPA) commits Foran to approximately 300,000 metric tons (mt) of gas in liquid form/year beginning in 2023. The purchase price is pegged to Henry Hub, the US benchmark for the price of natural gas, plus an undisclosed fee.
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“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,” Cheniere CEO Jack Fusco said.
The announcement came one day after Cheniere announced that LNG was produced for the first time from its sixth liquefaction facility at the Sabine Pass terminal in Louisiana.
Commissioning on train 6 at Sabine Pass is expected by Q1 2022, earlier than initially expected. Once completed, the full Sabine Pass facility will have a production capacity of about 30mn mt/yr of LNG.
Sabine Pass has been the dominant US exporter of LNG for much of the year. Of the 22 vessels laden with gas in liquid form that left export terminals during the week ending November 17, seven of them originated at the Louisiana terminal.
Cheniere also operates an LNG terminal in Texas. The company did not indicate from where deliveries to Foran would originate.