Cheniere and Foran Energy Group sign LNG SPA

Under the SPA, Foran has agreed to purchase approximately 0.9 million tpy of LNG for 20 years from Cheniere Marketing on a 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, US, and are subject to, among other things, a positive Final Investment Decision (FID) 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 CEO. “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 milion tpy of LNG capacity. In May 2023, certain subsidiaries of Cheniere Energy Partners, L.P. entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/03112023/cheniere-and-foran-energy-group-sign-lng-spa/