HOUSTON, Dec. 4, 2013
/PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG)
announced today that its subsidiary, Corpus Christi Liquefaction,
LLC ("Corpus Christi Liquefaction"), has entered into a liquefied
natural gas ("LNG") sale and purchase agreement ("SPA") with PT
Pertamina (Persero) ("Pertamina") under which Pertamina has agreed
to purchase approximately 0.8 million tonnes per annum ("mtpa") of
LNG upon the commencement of operations from the LNG export
facility being developed near Corpus
Christi, Texas (the "Corpus Christi Liquefaction
Project"). 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.
(Logo:
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Under the SPA, Pertamina 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 Pertamina's vessels.
The SPA has a term of twenty years commencing upon the date of
first commercial delivery and an extension option of up to ten
years. Deliveries are expected to occur as early as
2018.
"Pertamina, an Indonesian state-owned energy company, is the
first foundation customer for our Corpus Christi Liquefaction
Project being developed in Texas. Indonesia has historically been one of the
largest exporters of LNG and is now in the process of converting
one of their export terminals into an LNG receiving terminal.
Pertamina's SPA is the first long-term commitment made to procure
LNG from the international market for delivery into
Indonesia. We look forward to supplying LNG to meet
Indonesia's growing energy needs
and to supporting Indonesia's
efforts to enhance its energy security," said Charif Souki, Chairman and CEO.
"Furthermore, this SPA is a significant milestone for our project,
and we are continuing to make progress. We are nearing
completion of the regulatory process and are continuing to work
towards finalizing additional commercial agreements. We
expect to complete all necessary steps to begin construction on our
second LNG export terminal by the second half of 2014."
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 first train of the
Corpus Christi Liquefaction Project (the "Corpus Christi
FID"). Additionally, under a separate Omnibus Agreement, in
the event that a final investment decision to construct Train 6 of
the Sabine Pass Liquefaction Project is made prior to the Corpus
Christi FID, and upon approval of the required parties at Cheniere
Energy Partners, L.P., Pertamina and Corpus Christi Liquefaction
will terminate the SPA and Pertamina and Sabine Pass Liquefaction
will enter into an SPA for an equivalent amount of LNG from the
Sabine Pass facility.
Pertamina is a state-owned national energy company formed to
carry out integrated business in oil, gas, renewable and new energy
based on strong commercial principles both inside and outside of
Indonesia. Pertamina is a Fortune 500 company.
Pertamina conducts business activities in the field of energy and
petrochemical and is divided into two sectors, upstream and
downstream. The upstream sector covers the exploration and
production of oil, gas and geothermal energy,
while its downstream activities cover processing, marketing,
trading and shipping. Pertamina produces a multitude of
commodities such as fuel, kerosene, LPG, LNG, and
petrochemicals. Pertamina operates the Arun LNG plant, Badak
LNG plant and FSRU in West Java. Pertamina has also planned
to develop gas infrastructure in several areas in Indonesia.
Cheniere Energy, Inc. is a Houston-based energy company primarily engaged
in LNG-related businesses, and owns and operates the Sabine Pass
LNG terminal and Creole Trail Pipeline in Louisiana. Cheniere is pursuing related
business opportunities both upstream and downstream of the Sabine
Pass LNG terminal. Through its subsidiary, Cheniere Energy
Partners, L.P., Cheniere is developing a liquefaction project at
the Sabine Pass LNG terminal adjacent to the existing
regasification facilities for up to six LNG trains, each of which
will have a design production capacity of approximately 4.5 mtpa
("Sabine Pass Liquefaction Project"). Construction has begun on LNG
trains 1 through 4 at the Sabine Pass Liquefaction Project.
Cheniere has also initiated a project to develop liquefaction
facilities near Corpus Christi,
Texas. The Corpus Christi Liquefaction Project is being
designed and permitted for up to three LNG trains, with aggregate
design production capacity of up to 13.5 mtpa of LNG and which
would include three LNG storage tanks with capacity of 10.1 Bcfe
and two LNG carrier docks. Commencement of construction for the
Corpus Christi Liquefaction Project is subject, but not limited, to
obtaining regulatory approvals, entering into long-term customer
contracts sufficient to underpin financing of the project, entering
into engineering, procurement and construction contracts, obtaining
financing, and Cheniere making a final investment decision. We
believe LNG exports from the Corpus Christi Liquefaction Project
could commence as early as 2018. Additional information about
Cheniere Energy, Inc. may be found on its website located at
http://www.cheniere.com.
|
|
Target
Date
|
|
|
Sabine Pass
Liquefaction
|
|
Corpus Christi
Liquefaction
|
Milestone
|
|
Trains
1 &
2
|
|
Trains
3 &
4
|
|
Trains
5 &
6
|
|
Trains
1-3
|
DOE export
authorization
|
|
Received
|
|
Received
|
|
T5: Received
FTA
Pending
Non-FTA
|
|
Received
FTA; Pending Non-FTA
|
Definitive commercial
agreements
|
|
Completed 7.7
mtpa
|
|
Completed 8.3
mtpa
|
|
T5:
Completed
T6: 2014
|
|
2014
|
- BG Gulf Coast LNG,
LLC
|
|
4.2 mtpa
|
|
1.3 mtpa
|
|
|
|
|
- Gas Natural
Fenosa
|
|
3.5 mtpa
|
|
|
|
|
|
|
- KOGAS
|
|
|
|
3.5 mtpa
|
|
|
|
|
- GAIL (India)
Ltd.
|
|
|
|
3.5 mtpa
|
|
|
|
|
- Total Gas &
Power N.A.
|
|
|
|
|
|
2.0 mtpa
|
|
|
- Centrica
plc
|
|
|
|
|
|
1.75 mtpa
|
|
|
- PT
Pertamina
|
|
|
|
|
|
|
|
0.8 mtpa
|
EPC
contract
|
|
Completed
|
|
Completed
|
|
2015
|
|
2013
|
Financing
|
|
|
|
|
|
2015
|
|
2014
|
- Equity
|
|
Completed
|
|
Completed
|
|
|
|
|
- Debt
commitments
|
|
Received
|
|
Received
|
|
|
|
|
FERC
authorization
|
|
|
|
|
|
|
|
|
- FERC
Order
|
|
Received
|
|
Received
|
|
2015
|
|
2014
|
- Certificate to
commence construction
|
|
Received
|
|
Received
|
|
|
|
|
Issue Notice to
Proceed
|
|
Completed
|
|
Completed
|
|
2015
|
|
2014
|
Commence
operations
|
|
2015/2016
|
|
2016/2017
|
|
2018/2019
|
|
2018
|
This press release contains certain statements that may include
"forward-looking statements" within the meanings of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical fact, included herein are "forward-looking statements."
Included among "forward-looking statements" are, among other
things, (i) statements regarding Cheniere's business strategy,
plans and objectives, including the construction and operation of
liquefaction facilities, (ii) statements regarding our expectations
regarding regulatory authorizations and approvals, (iii) statements
expressing beliefs and expectations regarding the development of
Cheniere's LNG terminal and pipeline businesses, including
liquefaction facilities, (iv) statements regarding the business
operations and prospects of third parties, (v) statements regarding
potential financing arrangements and (vi) statements regarding
future discussions and entry into contracts. Although Cheniere
believes that the expectations reflected in these forward-looking
statements are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be
incorrect. Cheniere's actual results could differ materially
from those anticipated in these forward-looking statements as a
result of a variety of factors, including those discussed in
Cheniere's periodic reports that are filed with and available from
the Securities and Exchange Commission. You should not place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. Other than as required under the
securities laws, Cheniere does not assume a duty to update these
forward-looking statements.
SOURCE Cheniere Energy, Inc.