HOUSTON, June 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 Gas Natural Fenosa LNG SL
("Gas Natural Fenosa") under which Gas Natural Fenosa has agreed to
purchase approximately 1.5 million tonnes per annum ("mtpa") of LNG
upon the commencement of operations of Train 2 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, Gas Natural Fenosa 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 Gas
Natural Fenosa's vessels. The SPA has a term of twenty years
commencing upon 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.
"Gas Natural Fenosa is the second foundation customer on Train 2
of our Corpus Christi Liquefaction Project being developed in
Texas. This is in addition to
being a foundation customer at the Sabine Pass Liquefaction
project. Gas Natural Fenosa is a leading, integrated European
natural gas and power utility and significant participant in
natural gas and LNG markets worldwide," said Charif Souki, Chairman and CEO. "To date we have
entered into SPAs aggregating approximately 5.3 mtpa of LNG
volumes. We are in advanced discussions with other counterparties
and are working towards finalizing additional agreements. We
continue to 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 second train of the
Corpus Christi Liquefaction Project (the "Corpus Christi FID").
Gas Natural Fenosa is one of the leading multinational companies
in the gas and electricity sector. The company operates in more
than 25 countries, has more than 20 million customers and has 15.4
GW of installed power. It is the largest integrated gas and
electricity company in Spain and
Latin America, the leading
marketer of natural gas on the Iberian Peninsula, and one of the
largest distributors of natural gas in Latin America. Gas Natural Fenosa is a company
of reference for LNG markets in the Atlantic and Mediterranean
basins, where it operates 30 billion cubic meters (bcm). Additional
information about Gas Natural Fenosa may be found on its website
located at http://www.gasnaturalfenosa.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
|
|
|
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,
S.A.
|
|
|
|
|
|
|
|
2.25 mtpa
|
- Iberdrola,
S.A.
|
|
|
|
|
|
|
|
0.8 mtpa
|
- Gas Natural Fenosa
LNG SL
|
|
|
|
|
|
|
|
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
|
|
2014/2015
|
|
2014/2015
|
- Certificate to
commence construction
|
|
Received
|
|
Received
|
|
|
|
|
Issue Notice to
Proceed
|
|
Completed
|
|
Completed
|
|
2015
|
|
2015
|
Commence
operations
|
|
2015/2016
|
|
2016/2017
|
|
2018/2019
|
|
2018/2019
|
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.
Logo -
http://photos.prnewswire.com/prnh/20090611/AQ31545LOGO
SOURCE Cheniere Energy, Inc.