Cheniere, Endesa Sign Corpus Christi LNG Deal

Cheniere Energy said that its subsidiary, Corpus Christi Liquefaction, has entered into an LNG sale and purchase agreement (SPA) with Endesa under which the Spanish company has agreed to purchase approximately 1.5 mtpa of LNG upon the commencement of operations from the LNG export facility being developed near Corpus Christi, Texas. 

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 of Cheniere. “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.”

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Press Release, April 2, 2014; Image: Cheniere