Cheniere, Woodside ink Corpus Christi LNG deal
Cheniere Energy’s unit Corpus Christi Liquefaction has entered into an LNG sale and purchase agreement (SPA) with Woodside Energy Trading Singapore under which Woodside has agreed to purchase approximately 0.85 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 is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5 mtpa of LNG.
Under the SPA, Woodside 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 Woodside’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.
“Woodside, the largest Australian independent oil and gas company, will join our portfolio of customers in the Corpus Christi Liquefaction Project,” said Charif Souki, Chairman and CEO. “To date we have entered into SPAs aggregating approximately 6 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.”