(Yicai Global) June 27 -- Shares of ENN Natural Gas gained after the energy firm that sold 10 percent of all natural gas used in China last year said it had signed a deal to buy liquefied natural gas from Cheniere Energy, the leading US supplier of LNG.

ENN [SHA: 600803] finished 3.5 percent higher at CNY19.60 (USD2.70) a share in Shanghai today, after climbing by as much as 4.3 percent shortly before the close, extending the stock’s gain to 22 percent so far this year.

A Singaporean unit of ENN and Cheniere Marketing, a subsidiary of the US company, penned an agreement for up to 1.8 million tons of LNG a year, the Langfang-based buyer said in a statement yesterday.

The contract period will start in mid-2026 with an initial annual supply of 900,000 tons, which is expected to increase after the Houston-based firm expands its Sabine Pass LNG terminal in Louisiana.

Prices are pegged to the Henry Hub benchmark and the delivery method is free on board. The contract should be extended after the Sabine Pass expansion project is ready, ENN added.

Cheniere, which owns one of the world's biggest liquefaction platforms, has an annual LNG capacity of about 45 million tons, and that is being expanded by more than 10 million tons.

ENN sold 36.2 billion cubic meters of natural gas last year, according to its annual earnings report. It provides refueling services in over 250 cities in 20 provincial-level administration areas in eastern and central China and runs China's biggest privately-owned LNG receiving station in Zhoushan, Zhejiang province, per the report.

Editor: Emmi Laine