Cheniere and ENN sign long-term LNG sale and purchase agreement

Cheniere Energy (LNG) announced that Cheniere’s subsidiary, Cheniere Marketing has entered into a long-term liquefied natural gas sale and purchase agreement with ENN, a wholly-owned subsidiary of ENN Natural Gas. Under the SPA, ENN has agreed to purchase approximately 1.8m tons per annum 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 0.9 mtpa in 2027. Delivery of the remaining 0.9 mtpa, which is subject to, among other things, a positive Final Investment Decision with respect to the first train of the Sabine Pass Liquefaction 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 Chief Executive Officer. “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, and the value of Cheniere’s unique capability to tailor long-term solutions for customers worldwide.” 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 mtpa of LNG. In May 2023, certain subsidiaries of Cheniere Energy Partners American (CQP) entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission under the National Environmental Policy Act.