China's Foran Energy to sign 20-year LNG deal with Cheniere
BEIJING, Oct 30 (Reuters) - Chinese natural gas distribution company Foran Energy Group Co Ltd 002911.SZ on Monday said it plans to sign a 20-year liquefied natural gas (LNG) purchase agreement with U.S. company Cheniere Energy Inc LNG.A.
Cheniere will supply about 45 million British thermal heat (about 860,000 metric tons) per year from 2028, with purchasing prices linked to U.S. Henry Hub gas futures, Foran said in an announcement.
Cheniere is the largest U.S. producer and exporter of LNG.
(Reporting by Mei Mei Chu; editing by Jason Neely)
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.