Cheniere Energy, through its subsidiary Cheniere Marketing, has signed a long-term liquified natural gas (LNG) supply deal with Chinese company Foran Energy Group (Foran).

As per the sale and purchase agreement, Cheniere Marketing will supply around 0.9mtpa of LNG for 20 years to Foran.

The LNG will be delivered on a free-on-board basis for a purchase price indexed to the Henry Hub price and a predetermined liquefaction cost.

Cheniere Marketing will start shipping the LNG as soon as the second train, Train Eight, of the Sabine Pass Liquefaction Expansion Project (SPL Expansion Project) in Louisiana, US, begins commercial operations.

Delivery is contingent on a number of factors including the outcome of the Train Eight final investment decision.

The SPL Expansion Project is being developed with a maximum LNG capacity of around 20mtpa.

Cheniere Energy president and CEO Jack Fusco said: “We are pleased to build upon our existing long-term relationship with Foran, one of the fastest-growing natural gas companies in China, with the signing of our second 20-year SPA that secures increased LNG volumes for Foran for the long term.

“This 20-year SPA further supports China’s commitment to growing natural gas as a primary energy source and provides Foran with a flexible and reliable LNG solution for its operations. The SPA is also expected to support the SPL Expansion Project, and represents the first contract signed in connection with the project’s second train.”

In August this year, Cheniere signed a similar LNG supply agreement with Germany’s BASF.

Starting in mid-2026, the German company will be supplied with around 0.8mtpa of LNG through 2043.

Earlier in June, Cheniere and China’s ENN Natural Gas agreed on a 1.8mtpa LNG supply deal for a period of more than 20 years.