The Strategist

Cheniere to supply LNG to China

06/27/2023 - 09:10

A deal to acquire and sell LNG has been reached between Cheniere, a U.S. company, and ENN Energy, a Chinese company.

According to Cheniere’s press statement, ENN Energy, one of China's major distributors of sustainable energy goods, and Cheniere Energy Inc, the largest producer of liquefied natural gas in the United States, have agreed on LNG supplies.

"Cheniere Energy, Inc. announced today that Cheniere's subsidiary, Cheniere Marketing, has entered into a long-term liquefied natural gas sales and purchase agreement with ENN LNG (Singapore) Pte. Ltd, a wholly-owned subsidiary of ENN Natural Gas Co," according to the statement.

Thus, ENN has committed to buy LNG from Cheniere Marketing on a free-on-board basis for an amount equal to 1.8 million tons per year at a price linked to the Henry Hub natural gas transportation and distribution hub price, plus a set liquefaction fee.

Deliveries, according to the companies, will start in the middle of 2026 and climb to 0.9 million tons annually in 2027. When the seventh processing line starts up for business, delivery of the final 0.9 million tons per year will start.