Cheniere Energy, through its subsidiary Cheniere Marketing, has signed a deal with a unit of China’s natural gas distribution company ENN Natural Gas to supply LNG.

Under the sale and purchase agreement (SPA), Cheniere Marketing will supply approximately 0.9 million tonnes per annum (Mtpa) of LNG on a free-on-board basis to ENN LNG (Singapore).

The deal, which is effective from July 2022, has a term of approximately 13 years.

ENN Natural Gas board chairman Wang Yusuo said: “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.

“ENN is accelerating the usage of digital technology to build a modern energy system, and to promote intelligent upgrading of the natural gas industry.”

Under the deal, the LNG purchase price is indexed to the Henry Hub price and a fixed liquefaction fee.

Cheniere president and CEO Jack Fusco said: “The SPA also further advances Cheniere’s commercial momentum and marks another milestone in our efforts to contract our LNG capacity on a long-term basis in anticipation of an FID of Corpus Christi Stage 3, which we expect will occur next year.”

The Stage 3 expansion at the Corpus Christi plant will involve the development of up to seven ​’midscale’ trains with an aggregate nominal production capacity of approximately 10Mtpa.

This would increase the total nominal capacity of the Corpus Christi Liquefaction facility to approximately 25Mtpa.