Cheniere Energy subsidiary Corpus Christi Liquefaction has entered into another LNG sale and purchase agreement (SPA) within the space of a week, this time with Gas Natural Fenosa (GNF), having signed an SPA last week with Spain’s Iberdrola.
Under the new agreement, GNF will purchase approximately 1.5 million tpa of LNG from the Corpus Christi Liquefaction Project LNG facility from the start of operations of Train 2 (expected in 2019). The SPA is for a period of 20 years, with the option to extend by another decade.
Under the SPA, GNF 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 GNF’s vessels.
"GNF is the second foundation customer on Train 2 of our Corpus Christi Liquefaction Project being developed in Texas,” said Charif Souki, Chairman and CEO. “This is in addition to being a foundation customer at the Sabine Pass Liquefaction project. GNF is a leading, integrated European natural gas and power utility and significant participant in natural gas and LNG markets worldwide.
Souki said that the company had entered into SPAs amounting to 5.3 million tpa of LNG volumes, and that the company was in “advanced discussions” with other companies and looking to finalise agreements. “We continue to expect to complete all necessary steps to reach a final investment decision (FID) and begin construction by early 2015," he said.
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 an FID to construct the second train of the Corpus Christi Liquefaction Project.
Adapted from press release by Ted Monroe
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