Gas Natural Fenosa LNG SL signed a deal today with Cheniere Energy’s subsidiary, Corpus Christi Liquefaction to purchase approximately 1.5 million tons per annum (mtpa) of LNG from Train 2 of the proposed LNG export terminal for a period of 20 years.
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.
This is the second SPA signed by Corpus Christi Liquefaction in the past week.
Under the SPA, Gas Natural Fenosa will purchase 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 Gas Natural Fenosa’s vessels. The SPA has a term of twenty years commencing upon the date of first commercial delivery of the second train of the Corpus Christi Liquefaction Project, with an extension option of up to ten years. Deliveries from Train 2 are expected to occur in 2019.
“Gas Natural Fenosa is the second foundation customer on Train 2 of our Corpus Christi Liquefaction Project being developed in Texas. This is in addition to being a foundation customer at the Sabine Pass Liquefaction project. Gas Natural Fenosa is a leading, integrated European natural gas and power utility and significant participant in natural gas and LNG markets worldwide,” said Charif Souki, Chairman and CEO. “To date we have entered into SPAs aggregating approximately 5.3 mtpa of LNG volumes. We are in advanced discussions with other counterparties and are working towards finalizing additional agreements. We continue to 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 second train of the Corpus Christi Liquefaction Project (the “Corpus Christi FID”).