'China makes great efforts to achieve the goal of peak carbon emissions': Cheniere, ENN sign long-term sale and purchase agreement

Cheniere Energy Inc. has reached agreement on a long-term liquefied natural gas (LNG) sale and purchase agreement with subsidiary ENN.

“We are pleased to announce this long-term LNG contract with ENN, a major player in China’s rapidly growing natural gas market, and we look forward to a successful, long-term relationship with ENN as a customer,” Cheniere President and Chief Executive Officer Jack Fusco told Businesswire.  

With the deal being formally announced on Oct. 11, ENN has agreed to annually purchase approximately 0.9 million tonnes of LNG from Cheniere Marketing on a free-on-board basis for a term of approximately 13 years starting this summer. According to Businesswire, the purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee. ENN Natural Gas is acting as guarantor of the SPA.

“The SPA also further advances Cheniere’s commercial momentum and marks another milestone in our efforts to contract our LNG capacity on a long-term basis in anticipation of an FID of Corpus Christi Stage 3, which we expect will occur next year,” Fusco added.

ENN Natural Gas Chairman of the Board Wang Yusuo added it’s all part of China’s drive to achieve peak carbon emissions and gas neutrality.

“China is making great efforts to achieve the goal of peak carbon emissions and carbon neutrality, boosting the reform of the natural gas market, and accelerating the structural adjustment of energy consumption," Yusuo said.

Across the industry, Houston-based Cheniere is largely viewed as the leading producer and exporter of liquefied natural gas (LNG) in the U.S. As a full-service LNG provider with capabilities that include gas procurement and transportation, liquefaction, vessel chartering and LNG delivery, the company is regarded as one of the largest liquefaction platforms in the world with expected total production capacity of approximately 45 million tonnes annually.

One of the largest private energy companies in China, ENN Natural Gas’ has standing across the entire natural gas industry, including distribution, trade, storage & transportation, production and construction. In all, the company owns 239 city-gas projects in China, with a connectable population of 117 million.