Houston-based Cheniere Energy Inc. announced that its subsidiary, Corpus Christi Liquefaction LLC, entered into a 20-year LNG sale and purchase agreement (SPA) with Woodside Energy Trading Singapore Pte Ltd. Under the agreement, Woodside agreed to purchase about 0.85 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. 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.
Woodside 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 Woodside'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 6 mtpa of LNG volumes,” said Charif Souki, Cheniere chairman and CEO. “We are in advanced discussions with other counterparties and are working towards finalizing additional agreements. We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015.”
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