Cheniere Energy Inc. has entered into a binding 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with Chinese utility Foran Energy Group.

Henry Hub

Under the SPA, Foran has agreed to purchase approximately 0.3 million metric tons/year (mmty) of LNG from Cheniere Marketing on a delivered ex-ship basis for 20 years beginning in January 2023. The purchase would be indexed to the Henry Hub price, plus a fee.

“This long-term LNG solution supports Foran’s goals and provides additional supply as China continues to seek cleaner, lower-carbon natural gas to meet its economic and environmental goals,” Cheniere CEO Jack Fusco said.

Late last year, Foran said it had agreed to buy 26 LNG cargoes from Cheniere between 2021 and 2025. At the time, it was the first...