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China’s ENN signs 13-year LNG deal with Cheniere Energy

By Fitri Wulandari

07:43, 12 October 2021

Cheniere Energy logo on a smartphone
Cheniere Energy logo on a smartphone - Photo: Shutterstock

Chinese gas distribution company ENN Natural Gas has signed a 13-year deal to buy liquefied natural gas (LNG) from US firm Cheniere Energy, the first such agreement between the two firms. 

The US' largest LNG producer will supply 0.9 million tonnes of the super-chilled fuel on a free-on-board basis starting July 2022, ENN said in a statement Monday.

Zheng Hongtao, president of ENN, said that this is ENN’s first long-term LNG deal that is indexed to the monthly price at Henry Hub (a natural gas pipeline in Erath, Louisiana – the official delivery location for futures contracts on the New York Mercantile Exchange).

Carbon neutrality

Hebei-based ENN operates more than 230 city gas across China and Zhoushan LNG receiving terminal, the first large-scale, privately-owned LNG receiving terminal in China. Cheniere is the world’s second largest LNG operator.

The deal came as China is pushing to achieve its carbon neutrality target in 2060, by increasing clean energy use.


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"Under the goals of peak carbon emissions and carbon neutrality, China’s natural gas demand is expected to stay strong," ENN said in the statement, adding that China’s natural gas consumption will reach 550 to 600 billion cubic meter by 2030.

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Corpus Christi expansion

Jack Fusco, Cheniere’s president and CEO said in the statement that the deal also marks another milestone for Cheniere’s effort to contract its LNG capacity on a long-term basis to anticipate a final investment decision (FID) for Corpus Christi Stage 3 – the expansion of its Corpus Christi LNG project.

The FID for Corpus Christi Stage 3 is expected next year, Fusco added.

Corpus Christi Stage 3 will have up to seven mid scale LNG trains with total production capacity of 10 million tonnes per annum, according to the company’s website.

Read more: China’s carbon neutral target will increase gas demand

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