Foran Energy and Cheniere ink long-term LNG SPA
U.S. LNG exporter Cheniere and Chinese city gas supplier Foran Energy have signed a 20-year LNG sale and purchase agreement (SPA).
To be precise, Cheniere‘s subsidiary Cheniere Marketing has entered into this binding 20-year LNG SPA. The SPA follows the heads of agreement that subsidiaries of Cheniere and Foran signed back in November 2020.
Under the new deal, Foran will buy approximately 0.3 million tonnes per annum of LNG from Cheniere Marketing. This is on a delivered ex-ship basis for a term of 20 years beginning in January 2023.
The purchase price for LNG under the SPA is indexed to the Henry Hub price, in addition to a fee.
“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,” said Jack Fusco, Cheniere’s CEO.
“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.”