Cheniere Energy’s subsidiary, Corpus Christi Liquefaction, has entered into an LNG sale and purchase agreement (SPA) with Endesa Generacion.
Under the agreement, Endesa will purchase approximately 1.5 million tpa of LNG when operations commence at the LNG export facility currently under development near Corpus Christi, Texas.
Corpus Christi LNG
The Corpus Christi liquefaction project is being designed and permitted for up to three LNG trains, with a total design production capacity of 13.5 million tpa of LNG.
Under the SPA, Endesa will purchase LNG on an FOB basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto Endesa's vessels. The SPA has a term of twenty years commencing upon the date of first commercial delivery and an extension option of up to ten years. Deliveries are expected to occur as early as 2018.
Cheniere CEO, Charif Souki, commented: "Endesa is the second foundation customer for our Corpus Christi Liquefaction Project being developed in Texas. Endesa is a leading electric utility and major natural gas provider in Spain, and has significant operations throughout Latin America.
"We continue to work towards finalizing additional commercial agreements and are nearing completion of the regulatory process, having recently received our scheduling notice from the FERC. We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015."
Approvals and financing
The SPA is subject to certain conditions; the project must receive regulatory approvals, secure necessary financing arrangements and make a final investment decision to construct the first LNG train.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquefaction/02042014/cheniere_and_endesa_ink_lng_deal_378/