Cheniere Energy Inc.’s subsidiary Corpus Chrisi Liquefaction LLC entered a 20-year LNG sale and purchase agreement (SPA) with European electricity producer Électricité de France SA (EDF). Under the SPA, EDF agreed to purchase about 0.38 million tonnes per annum (mtpa) of LNG upon commencement of Train 2 operations of the LNG export facility being developed near Corpus Christi, Texas. When Train 3 operations begin, the amount of LNG purchased will increase to 0.77 mtpa. The Corpus Christi Liquefaction project has been designed and permitted for up to three trains, with a production capacity of 13.5 mtpa.
Under the SPA, EDF will buy 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 20-year term will begin on the date of first commercial delivery of the third train, and will have an extension option of up to 10 years. Deliveries from the third train are expected as early as 2019.
“EDF is the first foundation customer on Train 3 of our Corpus Christi Liquefaction project being developed in Texas,” said Charif Souki, chairman and CEO of Cheniere. “We have completed contracting for the first two trains … and are in advanced discussions with other counterparties on finalizing additional agreements for Train 3.”
The agreement is subject to certain conditions precedent, including but not limited to receiving regulatory approvals, securing financing arrangements and making a final investment decision to build Train 3.
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