Cheniere and Foran Energy Group Sign Long-Term LNG Sale and Purchase Agreement
20-Year SPA is First Contract Expected to Support Second Train of Sabine Pass Expansion Project
HOUSTON--(BUSINESS WIRE)-- Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE American: LNG) announced today that Cheniere’s subsidiary, Cheniere Marketing, LLC (“Cheniere Marketing”), has entered into a long-term liquefied natural gas (“LNG”) sale and purchase agreement (“SPA”) with Foran Energy Group Co. Ltd. (“Foran”).
Under the SPA, Foran has agreed to purchase approximately 0.9 million tonnes per annum (“mtpa”) of LNG for 20 years from Cheniere Marketing on a free-on-board (“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 and are subject to, among other things, a positive Final Investment Decision 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 Chief Executive Officer. “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 mtpa of LNG capacity. In May 2023, certain subsidiaries of Cheniere Energy Partners, L.P. (NYSE American: CQP) entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission.
Cheniere Energy, Inc. is the leading producer and exporter of LNG in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with total production capacity of approximately 45 mtpa of LNG in operation and an additional 10+ mtpa of expected production capacity under construction. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.
For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, filed with the Securities and Exchange Commission.
Foran Energy Group Co., Ltd., formerly Foshan Gas Group Co., Ltd., is one of the fastest growing city gas companies in China primarily engaged in the transmission and distribution of natural gas in the Guangdong region. Foran also provides gas engineering design and construction, integrated energy supply, natural gas trading, gas storage peak shaving and actively promotes the development of cutting-edge technologies and core equipment in the entire industrial chain of natural gas and hydrogen energy, such as solid oxide fuel cell (SOFC), furnace thermal equipment manufacturing, energy conservation and emission reduction, in-pipeline testing technology promotion and R&D, and integrated hydrogen production and hydrogenation equipment. Foran was founded in 1993 and is headquartered in Foshan, China. Foran mainly distributes its products within the domestic Chinese market and is expanding its business scope from a city gas company to a comprehensive energy service provider.
This press release contains certain statements that may include “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere’s financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding regulatory authorization and approval expectations, (iii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third-parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, and (vii) statements relating to Cheniere’s capital deployment, including intent, ability, extent, and timing of capital expenditures, debt repayment, dividends, share repurchases and execution on the capital allocation plan. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere’s periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.
Cheniere Energy, Inc.
Randy Bhatia, 713-375-5479
Frances Smith, 713-375-5753
Eben Burnham-Snyder, 713-375-5764
Bernardo Fallas, 713-375-5593
Source: Cheniere Energy, Inc.
Released November 2, 2023