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An entity of a Houston-based leading producer and exporter of liquefied natural gas (LNG) announced last month that they had agreed on a 20-year liquefied natural gas sale and purchase agreement with a Chinese gas company.
Jack Fusco, Cheniere’s president and chief executive officer, said that the agreement with Foran Energy Group Co., Ltd. will help the company network in China.
“We are pleased to finalize this 20-year SPA with Foran that builds upon our relationship,” Fusco said. “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. This SPA once again demonstrates the strength of the global LNG market today, particularly in China, and underscores the value of Cheniere’s leading ability to tailor solutions to help our customers advance their long-term energy and environmental priorities.”
According to Businesswire, the SPA comes on the heels of entities for Cheniere and Foran entering into a head of agreement in November of 2020 that designate for Foran to purchase approximately 0.3 million tons per annum of LNG from Cheniere Marketing on a transported ex-ship basis for the subsequent 20 years beginning in early 2023.
The buying price is the Henry Hub indexed price and a fee, according to Businesswire.
“Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with expected total production capacity of approximately 45 million tons per annum of LNG operating or under construction,” the news release said. “Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain.”
The company’s headquarters is located in Houston, Texas with affiliated offices in London, Singapore, Beijing, Tokyo and Washington, D.C., according to the news release.