HOUSTON, May 30, 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 Iberdrola, S.A.
("Iberdrola") under which Iberdrola has agreed to purchase
approximately 0.4 million tonnes per annum ("mtpa") of LNG upon the
commencement of operations of Train 1 of the LNG export facility
being developed near Corpus Christi,
Texas (the "Corpus Christi Liquefaction Project"), and
increasing to approximately 0.8 mtpa of LNG upon the commencement
of operations of Train 2. 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, Iberdrola will purchase LNG on a free on board
("FOB") basis for a purchase price indexed to the monthly Henry Hub
price plus a fixed component. LNG will be loaded onto Iberdrola's
vessels. The term of the SPA will extend for twenty years beyond
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.
"Iberdrola is the first foundation customer on Train 2 of our
Corpus Christi Liquefaction Project being developed in Texas. Iberdrola is a leading European power
generation and distribution company with operations located in
several countries around the Atlantic Basin," said Charif Souki, Chairman and CEO. "To date we have
entered into SPAs aggregating approximately 3.8 mtpa of LNG
volumes. We are in advanced discussions with other counterparties
and are working towards finalizing additional agreements. 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 Train 2 of the Corpus
Christi Liquefaction Project (the "Corpus Christi FID").
Iberdrola is a Spanish energy company which generates,
distributes, trades and markets electricity and natural gas. The
company is listed on the Bolsa de Madrid and is part of the IBEX 35 index. It
employs approximately 28,200 people. It is Spain's largest power company by installed
capacity with total power generation capacity of 45,000 MW
worldwide. Iberdrola has access to regasification capacity in
Spain, UK and the US. Additional
information about Iberdrola may be found on its website located at
http://www.iberdrola.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.
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Target
Date
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Sabine Pass
Liquefaction
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Corpus Christi
Liquefaction
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Milestone
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Trains
1 &
2
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Trains
3 &
4
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Trains
5 &
6
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DOE export
authorization
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Received
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Received
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T5: Received
FTA
Pending
Non-FTA
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Received FTA
Pending Non-FTA
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|
|
|
|
|
|
|
|
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Definitive commercial
agreements
|
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Completed
7.7 mtpa
|
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Completed
8.3 mtpa
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|
T5:
Completed
T6: 2014
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|
2014
|
- BG Gulf Coast LNG,
LLC
|
|
4.2 mtpa
|
|
1.3 mtpa
|
|
|
|
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- Gas Natural
Fenosa
|
|
3.5 mtpa
|
|
|
|
|
|
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- KOGAS
|
|
|
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3.5 mtpa
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|
|
|
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- GAIL (India)
Ltd.
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|
|
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3.5 mtpa
|
|
|
|
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- Total Gas &
Power N.A.
|
|
|
|
|
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2.0 mtpa
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|
|
- Centrica
plc
|
|
|
|
|
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1.75 mtpa
|
|
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- PT
Pertamina
|
|
|
|
|
|
|
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0.8 mtpa
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- Endesa,
S.A.
|
|
|
|
|
|
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2.25 mtpa
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- Iberdrola,
S.A.
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|
|
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|
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0.8 mtpa
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EPC
contract
|
|
Completed
|
|
Completed
|
|
2015
|
|
Completed
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Financing
|
|
|
|
|
|
2015
|
|
2014
|
- Equity
|
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Completed
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Completed
|
|
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|
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- Debt
commitments
|
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Received
|
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Received
|
|
|
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FERC
authorization
|
|
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|
|
|
|
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- FERC
Order
|
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Received
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Received
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2015
|
|
2014/2015
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- Certificate to
commence construction
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Received
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Received
|
|
|
|
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Issue Notice to
Proceed
|
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Completed
|
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Completed
|
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2015
|
|
2015
|
Commence
operations
|
|
2015/2016
|
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2016/2017
|
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2018/2019
|
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2018/2019
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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.