Cheniere Energy Inc.’s subsidiary Cheniere Marketing entered into a long-term LNG sale and purchase agreement (SPA) with China’s Foran Energy Group Co. Ltd., according to a Nov. 2 press release.

Under the agreement, Foran agreed to purchase approximately 0.9 million tonnes per annum (mtpa) of LNG for 20 years from Cheniere Marketing on a free-on-board basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee, according to the press release.

Deliveries will commence upon the start of commercial operations of the second train of the Sabine Pass Liquefaction (SPL) expansion project in Louisiana, which is subject to various factors including a final investment decision on Cheniere’s Train Eight.

“We are pleased to build upon our existing long-term relationship with Foran, one of the fastest growing natural gas companies in China, with the signing of our second 20-year SPA that secures increased LNG volumes for Foran for the long term,” said Jack Fusco, Cheniere’s president and CEO. “This 20-year SPA further supports China’s commitment to growing natural gas as a primary energy source and provides Foran with a flexible and reliable LNG solution for its operations. The SPA is also expected to support the SPL Expansion Project and represents the first contract signed in connection with the project’s second train.”

The SPL [project is being developed to accommodate approximately 20 mtpa of LNG capacity.