Cheniere Marketing has entered into a binding 20-year LNG sale and purchase agreement (“SPA”) with Foran Energy Group. The SPA follows a Heads of Agreement signed between subsidiaries of Cheniere and Foran in November of 2020.
Under the SPA, Foran has agreed to purchase approximately 0.3 million tonnes per annum of LNG from Cheniere Marketing 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, plus a fee.
“We are pleased to finalize this 20-year SPA with Foran that builds upon our relationship. 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 President and Chief Executive Officer.
“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.”