(Yicai Global) Nov. 6 -- China’s Foran Energy Group will purchase 26 shiploads of liquefied natural gas over the next five years from US LNG exporter Cheniere Energy to diversify its supply chain amid China's promise to increase its use of US LNG.

A unit of Foran penned an agreement with a subsidiary of the Texan firm today at the third China International Import Expo in Shanghai, the Foshan-based LNG producer and distributor said in a statement. Details of the deal will be decided by Dec. 31, it added.

China has promised to increase its purchasing of US-produced LNG as part of a trade agreement between China and the US penned in January. Before this, the nation has been buying most of its natural gas from Central Asian countries and Myanmar.

Foran and Cheniere are a new pair. The Chinese firm began buying the low-emission fuel from the US partner in August. So far, it has received USD9.3 million worth of LNG from Cheniere, making up almost 2 percent of its total this year.

Some frameworks of the deal are already clear. The price will be based on the New York Mercantile Exchange's Henry Hub index on the shipping date plus a fixed fee.

Foran sold almost 2.3 billion cubic meters of natural gas last year, serving more than 1 million households and over 3,000 businesses, according to its website.

Editor: Emmi Laine