corpus christi liquefaction

Corpus Christi Liquefaction Signs 20-Year LNG Deal With Spanish Utility Firm

Rob Almeida
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April 2, 2014

Rendering of the proposed Corpus Christi Liquefaction facility, via Cheniere Energy

Corpus Christi Liquefaction, LLC, a subsidiary of Cheniere Energy, announced today the signing of a 20-year sale and purchase agreement with Spanish utility firm, Endesa Generacion, S.A. for up to  1.5 million tonnes per annum (mtpa) of liquefied natural gas (LNG).

The deal signed today is subject to a number of regulatory approvals as well as the final investment decision to build the first of three LNG production trains, which hasn’t been made yet. Bechtel has been chosen as the primary contractor for the approximately $11 billion project.

Cheniere notes the Corpus Christi Liquefaction Project is being designed with an aggregate design production capacity of 13.5 mtpa of LNG with a projected start-up in 2018.

Under the SPA, Endesa will purchase LNG on an FOB basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto Endesa’s vessels and includes an extension option of up to ten years.

“Endesa is the second foundation customer for our Corpus Christi Liquefaction Project being developed in Texas. Endesa is a leading electric utility and major natural gas provider in Spain, and has significant operations throughout Latin America,” said Charif Souki, Chairman and CEO. “We continue to work towards finalizing additional commercial agreements and are nearing completion of the regulatory process, having recently received our scheduling notice from the FERC. We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015.”

In December 2013,  Indonesian state-owned energy company PT Pertamina agreed to purchase approximately 0.8 million mtpa of LNG from the facility.

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