Cheniere and ENN sign long-term LNG SPA
Published by Lydia Woellwarth,
Cheniere Energy, Inc. has announced that its subsidiary, Cheniere Marketing, LLC, has entered into an LNG Sales and Purchase Agreement (SPA) with ENN LNG (Singapore) Pte Ltd a wholly-owned subsidiary of ENN Natural Gas Co., Ltd.
Under the SPA, ENN LNG has agreed to purchase approximately 0.9 million tpy of LNG from Cheniere Marketing on a free-on-board basis for a term of approximately 13 years beginning in July 2022. 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.
“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,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “This SPA under-scores the strength of the global LNG market today, particularly in China, and highlights Cheniere’s role as a leading global LNG supplier, tailoring solutions to help meet the long-term energy needs and environmental goals of our customers. 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.”
Wang Yusuo, Chairman of the Board of ENN Natural Gas said, “China is making great efforts to achieve the goal of peak carbon emissions and car-bon neutrality, boosting the reform of the natural gas market, and accelerating the structural adjustment of energy consumption. As one of the world’s leading LNG suppliers, Cheniere has great advantages on resource production and supply capacity, which is highly compatible with the fast-growing natural gas market in China. ENN is accelerating the usage of digital technology to build a modern energy system, and to promote intelligent upgrading of the natural gas industry. It is expected that the two parties will seize the opportunity of this co-operation to establish a strategic relationship, to provide clients with high quality resources and services, and to make positive efforts to the realisation of peak carbon emissions and carbon neutrality in China.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/13102021/cheniere-and-enn-sign-long-term-lng-spa/
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