The Strategist

US, China agree on long-term gas supplies

11/25/2021 - 10:28

According to a press statement from Cheniere Energy Inc. in the United States, the business has struck a long-term agreement to export liquefied natural gas (LNG) to China's Foran Energy Group.

According to the press release, "Cheniere Energy today announced that its subsidiary, Cheniere Marketing International, LLP, has entered into a binding 20-year liquefied natural gas (LNG) purchase and sale agreement with Foran Energy Group Co., Ltd." The deal follows signing of essential conditions of the agreement between Cheniere and Foran subsidiaries in November 2020.

Foran will purchase around 0.3 million tonnes of LNG per year from Cheniere Marketing for the next 20 years, beginning in January 2023.

Cheniere Energy is the largest liquefied natural gas producer and exporter in the United States. The corporation owns the Sabine Pass LNG facility in Louisiana, which has a design capacity of 25 million tonnes of LNG per year and five production lines. A sixth line, with a capacity of 5 million tonnes, is now being built and is slated to begin operations in 2022.

The Corpus Christi project in Texas comprises three lines with a total design capacity of 15 million tonnes per year. However, as part of the Corpus Christi Stage 3 project, which includes building of seven more medium-volume liquefaction lines, it expects to increase the plant's capacity by around 10 million tonnes per year.