Cheniere Energy Inc. announced that its subsidiary Corpus Christi Liquefaction LLC entered into an LNG sale and purchase agreement (SPA) with EDP Energias de Portugal SA. Under the agreement, EDP will purchase about 0.77 million tonnes per annum (mtpa) of LNG when operations commence on Train 3 of the LNG export facility being developed near Corpus Christi, Texas. The Corpus Christi Liquefaction project is being designed and permitted for up to three trains, with aggregate design production capacity of about 13.5 mtpa of LNG.
Under the SPA, EDP will purchase LNG on a free on board basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. EDP’s vessels will transport the LNG from the Corpus Christi Liquefaction project. The term of the SPA will extend for 20 years beyond the date of first commercial delivery of the third train, with an extension option of up to 10 years. Deliveries from Train 3 are expected to occur as early as 2019.
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 build Train 3.
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