Woodside has announced that the conditions precedent to the LNG sales and purchase agreement (SPA) with Corpus Christi Liquefaction LLC have been satisfied.
Corpus Christi Liquefaction, a subsidiary of Cheniere Energy Inc., confirmed that it has made a final investment decision (FID) on the construction of Trains 1 and 2 of its Corpus Christi Liquefaction Project, following the US Energy Department’s decision to issue of final authorisation for the LNG project to export domestically produced LNG to countries that do not have a Free Trade Agreement (FTA) with the US.
Under the 20 year agreement, Woodside will purchase approximately 0.85 million tpy of LNG from the Corpus Christi Liquefaction Project on start-up of the second train at the LNG export facility. The LNG project is planned to include up to three LNG trains with a combined production capacity of 13.5 million tpy of LNG.
Woodside will purchase the LNG on a free on board basis. The price payable will be 115% of the monthly Henry Hub price plus US$3.50/million Btu, in line with contracts signed with the other buyers from the Corpus Christi LNG Project.
The LNG SPA includes a 10 year extension option and a mechanism that gives Woodside the option to forgo deliveries with sufficient notice through the payment of US$3.50/million Btu for cancelled quantities. Cargoes to Woodside from Train 2 are expected to start in 2019.
Woodside CEO, Peter Coleman, said: "These volumes complement Woodside's existing portfolio and provide a very strong base for Woodside to leverage new volumes from Browse, Kitimat and other sources of supply."
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/14052015/woodside-to-purchase-lng-from-corpus-christi-liquefaction-751/
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