Cheniere Inks Long-Term LNG Deal With China’s ENN in Another Sign of Market Strength

Cheniere Energy Inc. has agreed to supply liquefied natural gas (LNG) to Chinese utility ENN Natural Gas Co. Ltd. for 13 years beginning in July 2022. 

Under the sales and purchase agreement (SPA), subsidiary ENN LNG Pte Ltd. would purchase 900,000 metric tons annually on a free-on-board basis. ENN would pay prices indexed to Henry Hub, plus a fixed liquefaction fee. 

It is the first long-term deal inked between a Chinese buyer and American LNG producer in years amid ongoing trade tensions. Monday’s announcement further demonstrates how buyers have returned to the table to negotiate for  longer-term supplies as global natural gas prices have skyrocketed and created volatility on the spot market. 

“This SPA underscores the strength of the global LNG market today,...