Cheniere, EDF sign 20-year LNG sale and purchase agreement
HOUSTON -- Cheniere Energy Inc (Cheniere) reported that its subsidiary, Corpus Christi Liquefaction, LLC (Corpus Christi Liquefaction), has entered into a LNG sale and purchase agreement (SPA) with Electricite de France SA (EDF) under which EDF has agreed to purchase approximately 0.38 Mtpa of LNG upon the commencement of operations of Train 2 of the LNG export facility being developed near Corpus Christi, Texas (the Corpus Christi Liquefaction Project), and increasing to approximately 0.77 Mtpa of LNG upon the commencement of operations of Train 3. The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5 Mtpa of LNG.
Under the SPA, 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.
"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," said Charif Souki, Chairman and CEO. "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."
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 3 of the Corpus Christi Liquefaction Project.