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Analysts said the deal should bring Cheniere closer to the Final Investment Decision (FID) to build the proposed Phase 3 expansion of its Corpus Christi plant in Texas, which is expected in 2022.
The deal is one of many announced in recent weeks as LNG buyers seek to lock in prices and long-term supplies of supercooled fuel as global energy shortages have pushed prices to record highs. .
Utilities around the world are competing for LNG cargoes to fill extremely low gas stocks in Europe ahead of the winter heating season and to meet the insatiable demand for fuel in Asia, where coal and gas shortages are met. gas have caused power outages in China.
In the past two months, Cheniere has signed agreements to sell LNG to units of the French energy company Engie SA, the Anglo-Swiss mining and commodities trading company Glencore PLC, the Chinese distribution company of ENN Natural Gas Co Ltd and chemical and fertilizer producer Sinochem.
Cheniere said Foran would buy about 0.3 million tonnes per year (MTPA) of LNG at a price indexed to the US benchmark Henry Hub in Louisiana, plus a fee.
Stage 3 would add up to seven medium-scale liquefaction trains that would produce approximately 10 MTPA of LNG.
Analysts from Tudor, Pickering, Holt and Co said in a note Wednesday that Cheniere had already sold about 80% of the LNG Stage 3 could produce.
Cheniere is already the largest purchaser of gas in the United States and the largest American exporter of LNG with a production capacity of approximately 45 MTPA of LNG.
