Cheniere HoA may signal US-China LNG trade revival

Guangdong utility Foran has agreed to non-binding deal to delivery of cargoes, to add to the annual volumes it agreed to purchase from BP in July

The first tentative LNG agreement between the US and China since their bruising trade war disrupted deliveries may be an early sign that Chinese buyers are taking a second look at competitively priced American shipments. Foran Energy Group, an independent utility in southern China’s Guangdong province, signed a non-binding deal known as heads of agreement (HoA) with Cheniere’s LNG marketing division to buy 26 cargoes over a five-year period from 2021-25. The cargoes will be priced against the US Henry Hub benchmark. The agreement—signed at the third China International Import Expo (CIIE) in Shanghai on Friday—comes after Shenzhen Stock Exchange-listed Foran signed a HoA with BP in July to bu