Singapore’s ENN LNG is to buy 0.9 million tpa of LNG from Cheniere Energy from July 2022, under a new sale and purchase agreement (SPA) signed with Cheniere Marketing.
The SPA will last for approximately 13 years. The purchase price of the LNG will be indexed to the Henry Hub price, the benchmark price for natural gas futures on the New York Mercantile Exchange, based on the settlement price of the Henry Hub natural gas pipeline in Louisiana.
Jack Fusco, Cheniere’s president and CEO, says that the new agreement advances the company’s commercial momentum and marks a milestone in its efforts to contract LNG capacity on a long-term basis as it seeks to move towards a final investment decision (FID) on its stage 3 expansion project at its Corpus Christi site in Texas, US.
‘We are pleased to announce this long-term LNG contract with ENN, a major player in China’s rapidly growing natural gas market, and we look forward to a successful, long-term relationship with ENN as a customer. This SPA underscores the strength of the global LNG market today, particularly in China, and highlights Cheniere’s role as a leading global LNG supplier, tailoring solutions to help meet the long-term energy needs and environmental goals of our customers,’ says Fusco.