HOUSTON, July 1, 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 PT Pertamina (Persero)
("Pertamina") under which Pertamina has agreed to purchase
approximately 0.76 million tonnes per annum ("mtpa") of LNG upon
the commencement of operations of Train 2 of the LNG export
facility being developed near Corpus
Christi, Texas (the "Corpus Christi Liquefaction Project").
The SPA is in addition to the previously announced SPA under which
Pertamina will purchase approximately 0.76 mtpa of LNG, bringing
the total quantity of LNG sold to Pertamina under the two
agreements to approximately 1.52 mtpa. 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, Pertamina 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 Pertamina'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.
"This SPA represents additional LNG volumes contracted with
Pertamina at our Corpus Christi Liquefaction Project. We look
forward to supplying LNG to Indonesia as the country transitions to an LNG
importer to meet their growing energy needs," said Charif Souki, Chairman and CEO. "To date we have
entered into SPAs aggregating approximately 7 mtpa of LNG volumes,
completing our long-term contracting for the first two trains of
the Corpus Christi Liquefaction Project. We expect to complete all
remaining 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").
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. Additional information about
Pertamina may be found on its website located at
http://www.pertamina.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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|
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DOE export
authorization
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Received
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Received
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Received
FTA
Pending
Non-FTA
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Received FTA
Pending Non-FTA
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Definitive commercial
agreements
|
|
Completed
7.7 mtpa
|
|
Completed 8.3
mtpa
|
|
T5:
Completed T6: 2014
|
|
T1-T2:
Completed
|
- BG Gulf Coast LNG,
LLC
|
|
4.2 mtpa
|
|
1.3 mtpa
|
|
|
|
|
- Gas Natural
Fenosa
|
|
3.5 mtpa
|
|
|
|
|
|
|
- KOGAS
|
|
|
|
3.5 mtpa
|
|
|
|
|
- GAIL (India)
Ltd.
|
|
|
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3.5 mtpa
|
|
|
|
|
- Total Gas &
Power N.A.
|
|
|
|
|
|
2.0 mtpa
|
|
|
- Centrica
plc
|
|
|
|
|
|
1.75 mtpa
|
|
|
- PT
Pertamina
|
|
|
|
|
|
|
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1.52 mtpa
|
- Endesa,
S.A.
|
|
|
|
|
|
|
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2.25 mtpa
|
- Iberdrola,
S.A.
|
|
|
|
|
|
|
|
0.76 mtpa
|
- Gas Natural Fenosa
LNG SL
|
|
|
|
|
|
|
|
1.50 mtpa
|
- Woodside Energy
Trading Singapore
|
|
|
|
|
|
|
|
0.85 mtpa
|
EPC
contract
|
|
Completed
|
|
Completed
|
|
2015
|
|
Completed
|
Financing
|
|
|
|
|
|
2015
|
|
2014
|
- Equity
|
|
Completed
|
|
Completed
|
|
|
|
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- Debt
commitments
|
|
Received
|
|
Received
|
|
|
|
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FERC
authorization
|
|
|
|
|
|
|
|
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- FERC
Order
|
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Received
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Received
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2014/2015
|
|
2014/2015
|
- 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
|
|
Completed
|
|
2015
|
|
2015
|
Commence
operations
|
|
2015/2016
|
|
2016/2017
|
|
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.