20-plus Year SPA Expected to Support Sabine
Pass Expansion Project
Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE
American: LNG) announced today that Cheniere’s subsidiary, Cheniere
Marketing, LLC (“Cheniere Marketing”), has entered into a long-term
liquefied natural gas (“LNG”) sale and purchase agreement (“SPA”)
with ENN LNG (Singapore) Pte. Ltd. (“ENN”), a wholly-owned
subsidiary of ENN Natural Gas Co., Ltd. (“ENN Natural Gas”).
Under the SPA, ENN has agreed to purchase approximately 1.8
million tonnes per annum (“mtpa”) of LNG from Cheniere Marketing on
a free-on-board (“FOB”) basis for a purchase price indexed to the
Henry Hub price, plus a fixed liquefaction fee. Deliveries will
commence in mid-2026, ramping to 0.9 mtpa in 2027. Delivery of the
remaining 0.9 mtpa, 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”), will commence upon the start of
commercial operations of Train Seven. The term of the SPA extends
until the 20th anniversary of the start of commercial operations of
Train Seven.
“We are pleased to build upon our existing long-term
relationship with ENN, a leader in China’s rapidly growing natural
gas industry, with this 20-plus year agreement signed today,” said
Jack Fusco, Cheniere’s President and Chief Executive Officer. “This
SPA further supports China’s structural shift to natural gas as a
growing primary energy source, powering its economy while enabling
improved environmental performance with flexible, reliable and
cleaner LNG. 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.”
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.
Wang, Yusuo, Chairman of the Board of ENN Natural Gas said, “At
present, China is moving forward with the implementation of ‘carbon
peaking & carbon neutrality,’ further accelerating the energy
transformation, and China’s natural gas market is full of
potential. As a leading global LNG supplier, Cheniere’s stable LNG
production and supply capacity are highly compatible with China’s
fast growing natural gas market. The signing of this long-term SPA
marks another milestone in the establishment of good strategic
cooperation between two parties, contributes to ENN Natural Gas’
establishment of an intelligent ecological operator in the field,
provides customers with quality services and resources, and
promotes the low-carbon transformation and upgrade of all
industries.”
The SPL Expansion Project is being developed to include up to
three natural gas liquefaction trains with an expected total
production capacity of approximately 20 mtpa of LNG. In May 2023,
certain subsidiaries of Cheniere Energy Partners, L.P. (NYSE
American: CQP) entered the pre-filing review process with respect
to the SPL Expansion Project with the Federal Energy Regulatory
Commission under the National Environmental Policy Act.
About Cheniere
Cheniere Energy, Inc. is the leading producer and exporter of
LNG in the United States, reliably providing a clean, secure, and
affordable solution to the growing global need for natural gas.
Cheniere is a full-service LNG provider, with capabilities that
include gas procurement and transportation, liquefaction, vessel
chartering, and LNG delivery. Cheniere has one of the largest
liquefaction platforms in the world, consisting of the Sabine Pass
and Corpus Christi liquefaction facilities on the U.S. Gulf Coast,
with total production capacity of approximately 45 mtpa of LNG in
operation and an additional 10+ mtpa of expected production
capacity under construction. Cheniere is also pursuing liquefaction
expansion opportunities and other projects along the LNG value
chain. Cheniere is headquartered in Houston, Texas, and has
additional offices in London, Singapore, Beijing, Tokyo, and
Washington, D.C.
For additional information, please refer to the Cheniere website
at www.cheniere.com and Quarterly Report on Form 10-Q for the
quarter ended March 31, 2023, filed with the Securities and
Exchange Commission.
About ENN Natural Gas
As one of the largest private energy companies in China, ENN
Natural Gas Co., Ltd. (ENN Natural Gas, stock code 600803.SH)
operates over 250 city gas projects nationwide, has annual LNG
distribution capacity over 10 bcm, runs the first large-scale
private LNG terminal in China – ENN Zhoushan LNG Receiving
Terminal. Its business layout covers the entire natural gas value
chain, including distribution, trading, storage and transportation,
production and engineering. Based upon the innovation practices in
the field, ENN Natural Gas has built an intelligent operation
platform for natural gas industry. It accelerates the aggregation
of demand, resources, reserves, and delivery ecology of the natural
gas industry, innovates and develops digital intelligence services,
promotes the digital intelligence upgrade of the natural gas
industry. In 2022, ENN Natural Gas’s total natural gas sales volume
was 36.2 bcm, accounting approximately 10% of China’s total natural
gas consumption.
Forward-Looking Statements
This press release contains certain statements that may include
“forward-looking statements” within the meanings of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical or present facts or conditions, included herein are
“forward-looking statements.” Included among “forward-looking
statements” are, among other things, (i) statements regarding
Cheniere’s financial and operational guidance, business strategy,
plans and objectives, including the development, construction and
operation of liquefaction facilities, (ii) statements regarding
regulatory authorization and approval expectations, (iii)
statements expressing beliefs and expectations regarding the
development of Cheniere’s LNG terminal and pipeline businesses,
including liquefaction facilities, (iv) statements regarding the
business operations and prospects of third-parties, (v) statements
regarding potential financing arrangements, (vi) statements
regarding future discussions and entry into contracts, and (vii)
statements relating to Cheniere’s capital deployment, including
intent, ability, extent, and timing of capital expenditures, debt
repayment, dividends, share repurchases and execution on the
capital allocation plan. Although Cheniere believes that the
expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. Cheniere’s actual
results could differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors,
including those discussed in Cheniere’s periodic reports that are
filed with and available from the Securities and Exchange
Commission. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Other than as required under the securities laws,
Cheniere does not assume a duty to update these forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20230625700803/en/
Cheniere Energy, Inc.
Investors Randy Bhatia 713-375-5479
Frances Smith 713-375-5753
Media Relations Eben Burnham-Snyder
713-375-5764
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