Cheniere Energy strikes 20-year LNG supply deal with Foran Energy Group

In a strategic move to bolster the liquefied natural gas (LNG) supply chain, Cheniere Energy, Inc., through its subsidiary Cheniere Marketing, LLC, has cemented a significant long-term agreement with Foran Energy Group Co. Ltd. This sale and purchase agreement (SPA) ensures the supply of approximately 0.9 million tonnes per annum (mtpa) of LNG over two decades, with the pricing indexed to the Henry Hub plus a fixed fee, spotlighting the deal’s value in the energy market.

Commencement of Deliveries Tied to SPL Project Milestone

Set to initiate with the commercial operations of Train Eight of the Sabine Pass Liquefaction Expansion Project in Louisiana, the commencement of the LNG deliveries hinges on a positive Final Investment Decision for the train. This strategic partnership aligns with Foran’s growth trajectory as one of China‘s rapidly evolving natural gas entities.

Foran Energy’s Commitment to Natural Gas Expansion Backed by SPA

Jack Fusco, the President and CEO of Cheniere, expressed satisfaction with this second 20-year SPA with Foran, emphasizing its alignment with China’s natural gas utilization goals. “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,” Fusco stated, highlighting the deal’s significance in the context of international energy relations and market expansion.

Sabine Pass Liquefaction Expansion Project’s Impact on Global LNG Capacity

The SPL Expansion Project is poised to significantly augment global LNG capacity, aiming for up to 20 mtpa. The process toward regulatory approval commenced in May 2023 with pre-filing reviews, setting the stage for a substantial increase in the production and export of LNG, thereby enhancing energy security and market dynamics.