Woodside, Cheniere close Corpus Christi LNG deal

Woodside of Australia said that the conditions precedent to the LNG deal it has signed last year with Cheniere’s unit Corpus Christi Liquefaction have been satisfied.

Cheniere has just made a final investment decision on the construction of Trains 1 and 2 of the Corpus Christi liquefaction project.

Under the deal, Woodside will buy about 0.85 million tonnes of LNG per annum from the Corpus Christi project on start-up of the second train at the export facility being developed near Corpus Christi, Texas.

LNG will be purchased on a free on board basis. The price payable by Woodside will be 115% of the monthly Henry Hub price plus US$3.50 per million British thermal unit (MMBtu), in line with contracts signed with the other buyers from the Corpus Christi LNG project, Woodside said in a statement on Thursday.

The twenty-year agreement includes an extension option of up to an additional ten years and a mechanism that gives Woodside the option to forgo deliveries with sufficient notice through the payment of US$3.50/MMBtu for cancelled quantities.

Cargoes to Woodside from Train 2 are expected to start in 2019.

LNG World News Staff; Image: Woodside