Cheniere and Foran Energy Group Sign Long-Term LNG Sale and Purchase Agreement
20-Year SPA is First Contract Expected to Support Second Train of Sabine Pass Expansion Project
HOUSTON- Cheniere Energy, Inc. has announced that Cheniere’s subsidiary, Cheniere Marketing, LLC, has entered into a long-term liquefied natural gas (“LNG”) sale and purchase agreement with Foran Energy Group Co. Ltd.
Under the SPA, Foran has agreed to purchase approximately 0.9 million tonnes per annum (“mtpa”) of LNG for 20 years from Cheniere Marketing on a free-on-board (“FOB”) 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 Eight”) of the Sabine Pass Liquefaction Expansion Project (“SPL Expansion Project”) in Louisiana and are subject to, among other things, a positive Final Investment Decision with respect to Train Eight.
“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 President and Chief Executive Officer. “This 20-year SPA further supports China’s commitment to growing natural gas as a primary energy source and provides Foran with a flexible and reliable LNG solution for its operations. The SPA is also expected to support the SPL Expansion Project, and represents the first contract signed in connection with the project’s second train.”
The SPL Expansion Project is being developed for up to approximately 20 mtpa of LNG capacity. In May 2023, certain subsidiaries of Cheniere Energy Partners, L.P. (NYSE American: CQP) entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission.
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