Cheniere Energy subsidiary, Corpus Christi Liquefaction, has entered into an LNG sale and purchase agreement (SPA) with EDF.
Under the agreement, EDF has agreed to purchase approximately 0.38 million tpa of LNG following the start-up of operations of Train 2 of the LNG export facility currently under development near Corpus Christi, Texas. EFG will increase this amount to approximately 0.77 million tpa of LNG when Train 3 commences operation.
The Corpus Christi project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5 million tpa of LNG.
EDF will purchase LNG on a free on board basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto EDF's vessels. The term of the SPA will extend for twenty years beyond the date of first commercial delivery of the third train of the Corpus Christi Liquefaction Project, with an extension option of up to ten years. Deliveries from Train 3 are expected to occur as early as 2019.
Cheniere CEO, Charif Souki, commented: "EDF is the first foundation customer on Train 3 of our Corpus Christi Liquefaction Project being developed in Texas. EDF is a leading European integrated electricity producer and distributor, and we look forward to supplying LNG to support EDF's asset portfolio.
"We have completed contracting for the first 2 trains of the Corpus Christi Liquefaction Project and are in advanced discussions with other counterparties on finalizing additional agreements for Train 3. We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015."
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquefaction/18072014/edf_to_purchase_lng_from_corpus_christi_in_texas_1012/