Cheniere Energy Inc. announced that its subsidiary, Corpus Christi Liquefaction LLC, entered into a 20-year LNG sale and purchase agreement (SPA) with PT Pertamina (Persero). Under the agreement, Pertamina will purchase about 0.76 million tonnes per annum (mtpa) of LNG upon the commencement of operations of Train 2 of the LNG export facility being developed near Corpus Christi, Texas.
This SPA is in addition to the previously announced SPA under which Pertamina agreed to purchase about 0.76 mtpa, which brings the total quantity of LNG sold to Pertamina to 1.52 mtpa. The facility is being designed for up to three trains with production capacity of 13.5 mtpa. Deliveries from Train 2 are expected to occur in 2019.
Pertamina will purchase LNG on a free on board basis for a price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto Pertamina’s vessels. The agreement 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 2.
“To date we have entered into SPAs aggregating approximately 7 mtpa of LNG volumes, completing our long-term contracting for the first two trains of the Corpus Christi Liquefaction Project,” said Charif Souki, Cheniere chairman and CEO. “We expect to complete all remaining necessary steps to reach a final investment decision and begin construction by early 2015.”
Recommended Reading
CNX, Appalachia Peers Defer Completions as NatGas Prices Languish
2024-04-25 - Henry Hub blues: CNX Resources and other Appalachia producers are slashing production and deferring well completions as natural gas spot prices hover near record lows.
Chevron’s Tengiz Oil Field Operations Start Up in Kazakhstan
2024-04-25 - The final phase of Chevron’s project will produce about 260,000 bbl/d.
Rhino Taps Halliburton for Namibia Well Work
2024-04-24 - Halliburton’s deepwater integrated multi-well construction contract for a block in the Orange Basin starts later this year.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Deepwater Roundup 2024: Americas
2024-04-23 - The final part of Hart Energy E&P’s Deepwater Roundup focuses on projects coming online in the Americas from 2023 until the end of the decade.