Cheniere Energy Inc's (AMEX:LNG) subsidiary, Cheniere Marketing, LLC, inked a long-term LNG sale and purchase agreement with ENN LNG (Singapore) Pte. Ltd.
ENN is a wholly-owned subsidiary of ENN Natural Gas Co., Ltd.
As per the deal, ENN will purchase around 1.8 million tonnes per annum (mtpa) of LNG from Cheniere Marketing on a free-on-board basis for a purchase price indexed to the Henry Hub price (plus a fixed liquefaction fee).
The company expects deliveries to start in mid-2026, with a projected ramping up to 0.9 mtpa in 2027, subject to a favorable Final Investment Decision concerning the first train of the Sabine Pass Liquefaction Expansion Project.
The 20-year plus deal is expected to support Sabine pass expansion project.
This is the second long-term sale and purchase deal between ENN and Cheniere Marketing, with the first deal inked in October 2021.
"This SPA accelerates Cheniere's commercial momentum on the SPL Expansion Project, demonstrating the market's need for additional LNG capacity, and the value of Cheniere's unique capability to tailor long-term solutions for customers worldwide," said Jack Fusco, President, and CEO.
Last week, Cheniere Marketing entered into a long-term liquefied natural gas sale and purchase agreement with Equinor ASA (NYSE:EQNR).
Also Read: Cheniere Energy's Debt Maturity Deliberations: Analyst Predicts Possible Approaches Amid Interest Rate Hikes
Price Action: LNG shares are trading higher by 0.03% at $148.60 on the last check Monday.