American energy company Cheniere Energy is to help boost China’s rapidly growing liquefied natural gas (LNG) boost by agreeing to sell ENN LNG, subsidiary of China-based ENN Natural Gas (ENN), 0.9 million tonnes per annum of LNG.
The Sales and Purchase Agreement (SPA) is to last for 13 years beginning in July 2022, with the price indexed to the Henry Hub price.
Stating that the deal highlights Cheniere’s role as a ‘leading global LNG supplier’, Jack Fusco, President, CEO, Cheniere, said it also underscores the strength of the global LNG market today, particularly in China.
Regarded as one of the world’s leading LNG suppliers, Cheniere’s LNG supply is considered to be ‘highly compatible’ with the fast-growing natural gas market in China, according to Wang Yusuo, Chairman of the Board, ENN Natural Gas.
“China is making great efforts to achieve the goal of peak carbon emissions and carbon neutrality, boosting the reform of the natural gas market, and accelerating the structural adjustment of energy consumption,” he added.