Cheniere and Iberdrola enter into SPA

Cheniere announced today that its subsidiary, Corpus Christi Liquefaction, LLC has entered into a LNG sale and purchase agreement (SPA) with Spanish power company Iberdrola, S.A.

Under the agreement, Iberdrola will purchase 0.4 million tpa of LNG upon the commencement of operations of train 1 of the LNG export facility being developed near Corpus Christi, Texas. This amount will increase to 0.8 million tpa of LNG when train 2 begins operations.

The agreement is for 20 years beyond the first delivery of the second train, expected in 2019.

Under the SPA, Iberdrola will purchase LNG on a free on board (FOB) basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto Iberdrola's vessels.

"Iberdrola is the first foundation customer on train 2 of our Corpus Christi Liquefaction Project being developed in Texas," said Charif Souki, Cheniere Chairman and CEO. "To date we have entered into SPAs aggregating approximately 3.8 million tpa of LNG volumes. We are in advanced discussions with other counterparties and are working towards finalising additional agreements. We expect to complete all necessary steps to reach a final investment decision (FID) and begin construction by early 2015."

The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5 million tpa of LNG.

Edited from various sources by Ted Monroe

Read the article online at: https://www.lngindustry.com/liquefaction/30052014/cheniere_subsidiary_corpus_christi_liquefaction_and_iberdrola_enter_into_spa/