Cheniere, Foran Energy Group Sign LNG Sale, Purchase Agreement

Cheniere Energy has announced that its subsidiary, Chenire Marketing, signed a long-term LNG sale and purchase agreement (SPA) with Foran Energy Group. According to the SPA, Foran Energy will purchase approximately 0.9 mtpa of LNG for 20 years from Cheniere Marketing on a free-on-board basis. The purchase price has been indexed to the Henry Hub price, with the addition of a fixed liquefaction fee.

“We are pleased to build upon our existing long-term relationship with Foran 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.”

LNG deliveries will begin at the start of commercial operation for the second train—Train Eight—at the Sabine Pass liquefaction expansion project (SPL) in Louisiana. These deliveries are subject to the final investment decision for Train Eight.

Overhead rendering of the Sabine Pass expansion project; Image Credits: Cheniere Energy

The SPL expansion project is planned to have a capacity of up to approximately 20 mtpa of LNG. In May of 2023, subsidiaries of Cheniere Energy Partners entered the pre-filing review process for the SPL expansion project with the Federal Energy Regulatory Commission.