Cheniere and PETRONAS Sign 20-Year LNG Sale and Purchase Agreement
December 18 2018 - 08:30AM
Business Wire
Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE
American: CQP) announced today that its subsidiary Sabine Pass
Liquefaction, LLC (“Sabine Pass Liquefaction”) has entered into a
liquefied natural gas (“LNG”) sale and purchase agreement (“SPA”)
with PETRONAS LNG Ltd. (“PLL”), a subsidiary of the Malaysian
state-owned oil and gas company, PETRONAS. PLL has agreed to
purchase approximately 1.1 million tonnes per annum of LNG from
Sabine Pass Liquefaction on a free on board basis for a term of 20
years following the date of first commercial delivery for the sixth
natural gas liquefaction train (“Train 6”) at the Sabine Pass
liquefaction project (“SPL Project”). The purchase price for LNG is
indexed to the monthly Henry Hub price, plus a fee.
“PETRONAS is one of the largest and most experienced
participants in the global LNG market, and we are pleased to have
it as our newest foundation customer at Sabine Pass, supporting
Train 6,” said Jack Fusco, Chairman, President and CEO of Cheniere
Partners. “This 20-year agreement with Sabine Pass Liquefaction
continues our momentum on Train 6, where early engineering,
procurement, and site preparation activities have recently
commenced ahead of a final investment decision. We expect this SPA
to support our continued progress toward a final investment
decision in 2019.”
PETRONAS Vice President of LNG Marketing & Trading, Ahmad
Adly Alias said, “PETRONAS is pleased to enter into this long-term
relationship with Cheniere Partners. With the addition of this new
volume, it will enhance PETRONAS’ supply portfolio and further
strengthen our position as a reliable global LNG portfolio
player.”
The SPA is subject to certain conditions precedent, including
but not limited to Sabine Pass Liquefaction making a final
investment decision to construct Train 6 of the SPL Project.
About Cheniere Partners
Cheniere Partners, through its subsidiary, Sabine Pass
Liquefaction, is developing, constructing, and operating natural
gas liquefaction facilities at the Sabine Pass LNG terminal located
in Cameron Parish, Louisiana, on the Sabine-Neches Waterway less
than four miles from the Gulf Coast. Cheniere Partners, through
Sabine Pass Liquefaction, plans to construct up to six Trains,
which are in various stages of development, construction, and
operations. Trains 1 through 4 are operational, Train 5 is
undergoing commissioning, and Train 6 is being commercialized and
has all necessary regulatory approvals in place. Each Train is
expected to have a nominal production capacity, which is prior to
adjusting for planned maintenance, production reliability,
potential overdesign, and debottlenecking opportunities, of
approximately 4.5 mtpa of LNG and a run rate adjusted nominal
production capacity of approximately 4.5 to 4.9 mtpa of LNG.
Through its wholly owned subsidiary, Sabine Pass LNG, L.P.,
Cheniere Partners owns and operates regasification facilities at
the Sabine Pass LNG terminal, which includes pre-existing
infrastructure of five LNG storage tanks with aggregate capacity of
approximately 16.9 billion cubic feet equivalent, two marine berths
that can each accommodate vessels with nominal capacity of up to
266,000 cubic meters and vaporizers with regasification capacity of
approximately 4.0 Bcf/d. Cheniere Partners also owns a 94-mile
pipeline that interconnects the Sabine Pass LNG terminal with a
number of large interstate pipelines through its wholly owned
subsidiary, Cheniere Creole Trail Pipeline, L.P.
For additional information, please refer to the Cheniere
Partners website at www.cheniere.com and Quarterly Report on Form
10-Q for the quarter ended September 30, 2018, filed with the
Securities and Exchange Commission.
Forward-Looking Statements
This press release contains certain statements that may include
“forward-looking statements.” All statements, other than statements
of historical or present facts or conditions, included herein are
“forward-looking statements.” Included among “forward-looking
statements” are, among other things, (i) statements regarding
Cheniere Partners’ financial and operational guidance, business
strategy, plans and objectives, including the development,
construction and operation of liquefaction facilities, (ii)
statements regarding expectations regarding regulatory
authorizations and approvals, (iii) statements expressing beliefs
and expectations regarding the development of Cheniere Partners’
LNG terminal and liquefaction business, (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 Partners 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 Partners’ 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 Partners’ 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 Partners
does not assume a duty to update these forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20181218005430/en/
Cheniere Energy Partners, L.P.InvestorsRandy Bhatia, 713-375-5479Megan Light,
713-375-5492OrMedia RelationsEben
Burnham-Snyder, 713-375-5764Ray Fohr, 713-375-5355
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