HOUSTON, April 2, 2014 /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 Endesa Generacion, S.A.
("Endesa") under which Endesa has agreed to purchase approximately
1.5 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.
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.
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.
"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."
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").
Endesa is a Spanish multinational which operates across the
entire value chain of the electricity business (generation,
transmission, distribution and sale). It is also an important
player in the gas business. Endesa is the leading power company in
Spain, the largest private
electricity utility in Latin
America and is present in various European countries and
Morocco. Endesa has total
installed capacity of 40,000 MW, generates 130,000 GWh and has 25
million customers and 23,000 employees worldwide. Endesa is part of
the Enel group, the largest electric utility in Italy and the second largest in Europe by installed capacity. Enel is an
integrated operator active in the energy and gas sector which is
present in 40 countries worldwide, has net installed capacity of
97,000 MW and sells gas and electricity to over 61 million
customers. Additional information about Endesa may be found on its
website located at http://www.endesa.com.
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,
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
|
- Endesa Generacion,
S.A.
|
|
|
|
|
|
|
|
1.5 mtpa
|
EPC
contract
|
|
Completed
|
|
Completed
|
|
2015
|
|
Completed
|
Financing
|
|
|
|
|
|
2015
|
|
2014
|
- Equity
|
|
Completed
|
|
Completed
|
|
|
|
|
- Debt
commitments
|
|
Received
|
|
Received
|
|
|
|
|
FERC
authorization
|
|
|
|
|
|
|
|
|
- FERC
Order
|
|
Received
|
|
Received
|
|
2015
|
|
2014/2015
|
- Certificate to
commence construction
|
|
Received
|
|
Received
|
|
|
|
|
Issue Notice to
Proceed
|
|
Completed
|
|
Completed
|
|
2015
|
|
2014/2015
|
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.
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SOURCE Cheniere Energy, Inc.