Corpus Christi Liquefaction Signs LNG Supply Deal with Électricité de France

Cheniere Energy subsidiary Corpus Christi Liquefaction, LLC announced the signing today of a 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with Électricité de France, S.A (EDF).

The agreement includes the purchase of approximately 0.38 million tonnes per annum (mtpa) of LNG upon the commencement of operations of Train 2 of the LNG export facility and increasing to approximately 0.77 mtpa of LNG upon the commencement of operations of Train 3.

Cheniere CEO Charif Souki notes EDF is their first customer to sign up for LNG from Train 3 of their proposed LNG liquefaction plant at Corpus Christi.

Deliveries from Train 3 are expected to occur as early as 2019 and Cheniere notes the SPA will extend 20 years from the delivery of the first commercial cargo from that train. The SPA also includes a 10-year extension option.

“We have completed contracting for the first 2 trains of the Corpus Christi Liquefaction Project and are in advanced discussions with other counterparties on finalizing additional agreements for Train 3. We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015,” commented Souki.

The price of LNG will be indexed to Henry Hub price plus a fixed component.