Cheniere Marketing LLC, a Cheniere Energy Inc. subsidiary, has agreed to a 20-year LNG supply deal with ENN LNG (Singapore) Pte. Ltd. (ENN), a wholly owned subsidiary of ENN Natural Gas Co. Ltd. (ENN Natural Gas).
Under the agreement, Cheniere will supply 1.8 million tonnes/year (tpy) of LNG on a free-on-board basis for a purchase price indexed to Henry Hub, plus a fixed liquefaction fee. Deliveries will begin in mid-2026, ramping to 0.9 million tpy in 2027.
Delivery of the remaining 0.9 million tpy, which is subject to, among other things, a positive final investment decision with respect to the first train (train seven) of the Sabine Pass liquefaction expansion project (SPL expansion project) in Cameron Parish, La., will begin upon commercial start of train seven.
The SPL expansion project is being developed to include up to three natural gas liquefaction trains with an expected total production capacity of about 20 million tpy of LNG. In May 2023, certain subsidiaries of Cheniere Energy Partners LP entered the pre-filing review process with respect to the expansion project with the Federal Energy Regulatory Commission under the National Environmental Policy Act (OGJ Online, Feb. 23, 2023).
This is the second long-term SPA signed between ENN and Cheniere Marketing. The long-term SPA signed in October 2021 initiated the first cooperation between two parties in the LNG business.
