Cheniere and Endesa Sign 20-Year LNG Sale and Purchase Agreement
Cheniere signs next customer for LNG sales from Corpus Christi
– Endesa contracts for approximately 1.5 million tonnes per annum of LNG
Cheniere Energy, Inc. (“Cheniere”) (NYSE MKT: LNG) announced today that its subsidiary, Corpus Christi Liquefaction, LLC (“Corpus Christi Liquefaction”), has entered into a liquefied natural gas (“LNG”) sale and purchase agreement (“SPA”) with Endesa Generacion, S.A. (“Endesa”) under which Endesa has agreed to purchase approximately 1.5 million tonnes per annum (“mtpa”) of LNG upon the commencement of operations from the LNG export facility being developed near Corpus Christi, Texas (the “Corpus Christi Liquefaction Project”). 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, Endesa will purchase LNG on an FOB basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto Endesa’s vessels. The SPA has a term of twenty years commencing upon the date of first commercial delivery and an extension option of up to ten years. Deliveries are expected to occur as early as 2018.
“Endesa is the second foundation customer for our Corpus Christi Liquefaction Project being developed in Texas. Endesa is a leading electric utility and major natural gas provider in Spain, and has significant operations throughout Latin America,” said Charif Souki, Chairman and CEO. “We continue to work towards finalizing additional commercial agreements and are nearing completion of the regulatory process, having recently received our scheduling notice from the FERC. 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 the first train of the Corpus Christi Liquefaction Project (the “Corpus Christi FID”).