Cheniere Energy, Inc. announced that its subsidiary, Cheniere Marketing, LLC, has entered into a long-term LNG sale and purchase agreement (SPA) with ENN LNG (Singapore) Pte. Ltd (ENN), a wholly-owned subsidiary of ENN Natural Gas Co., Ltd.
p> Under the SPA, ENN has agreed to purchase approximately 1.8 million tpy of LNG from Cheniere Marketing on a free-on-board basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries will commence in mid-2026, ramping to 900 000 tpy in 2027. Delivery of the remaining 900 000 tpy, which is subject to, among other things, a positive final investment decision, with respect to Train Seven of the Sabine Pass liquefaction (SPL) expansion project, will commence upon the start of commercial operations of Train Seven. The term of the SPA extends until the 20th anniversary of the start of commercial operations of Train Seven.
“We are pleased to build upon our existing long-term relationship with ENN, a leader in China’s rapidly growing natural gas industry, with this 20-plus year agreement signed today,” said Jack Fusco, Cheniere’s President and CEO. “This SPA further supports China’s structural shift to natural gas as a growing primary energy source, powering its economy while enabling improved environmental performance with flexible, reliable, and cleaner LNG. This SPA accelerates Cheniere’s commercial momentum on the SPL expansion project, demonstrating the market’s need for additional LNG capacity.”
This is the second long-term SPA signed between ENN and Cheniere Marketing. The long-term SPA signed in October 2021 initiated the first cooperation between two parties in the LNG business.
“At present, China is moving forward with the implementation of ‘carbon peaking and carbon neutrality,’ further accelerating the energy transformation, and China’s natural gas market is full of potential,” added Wang, Yusuo, Chairman of the Board of ENN Natural Gas. “As a global LNG supplier, Cheniere’s stable LNG production and supply capacity are compatible with China’s fast-growing natural gas market. The signing of this long-term SPA contributes towards ENN Natural Gas’ establishment of an intelligent ecological operator in the field, provides customers with quality services and resources, and promotes the low-carbon transformation and upgrade of all industries.”
The SPL Expansion Project is being developed to include up to three natural gas liquefaction trains with an expected total production capacity of approximately 20 million tpy of LNG.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/27062023/cheniere-and-enn-sign-longo-term-lng-sale-and-purchase-agreement/
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