Cheniere Energy has announced that is subsidiary, Corpus Chrisit Liquefaction, has signed an LNG sale and purchase agreement (SPA) with Woodside Energy.
Under the agreement, Woodside will purchase approximately 0.85 million tpa of LNG following the commencement of operations of Train 2 of the LNG export facility being developed in Texas. 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.
Woodside 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 Woodside's vessels. The SPA has a term of twenty years commencing upon the date of first commercial delivery of the second train of the Corpus Christi liquefaction project, with an extension option of up to ten years. Deliveries from Train 2 are expected to occur in 2019.
"Woodside, the largest Australian independent oil and gas company, will join our portfolio of customers in the Corpus Christi liquefaction project. To date we have entered into SPAs aggregating approximately 6 million tpa of LNG volumes. We are in advanced discussions with other counterparties and are working towards finalizing additional agreements. We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015," commented Charif Souki, Chairman and CEO.
The SPA is subject to certain conditions precedent, including but not limited to Corpus Christi Liquefaction receiving regulatory approvals, securing necessary financing arrangements and making a final investment decision to construct Train 2 of the liquefaction project.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquefaction/30062014/cheniere_and_woodside_ink_lng_agreement_for_corpus_christi_881/