HOUSTON, Dec. 18, 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 EDP Energias de Portugal
S.A. ("EDP") under which EDP has agreed to purchase approximately
0.77 million tonnes per annum ("mtpa") of LNG upon the commencement
of operations of Train 3 of the LNG export facility being developed
near Corpus Christi, Texas (the
"Corpus Christi Liquefaction Project"). The Corpus Christi
Liquefaction Project is being designed and permitted for up to
three trains, with aggregate design production capacity of
approximately 13.5 mtpa of LNG.
Under the SPA, EDP will purchase LNG on a free on board basis
(FOB) for a purchase price indexed to the monthly Henry Hub price
plus a fixed component. LNG will be loaded onto EDP's vessels. The
term of the SPA will extend for twenty years beyond the date of
first commercial delivery of the third train of the Corpus Christi
Liquefaction Project, with an extension option of up to ten years.
Deliveries from Train 3 are expected to occur as early as 2019.
"EDP, Portugal's largest
supplier of electricity and second largest supplier of gas, is the
second customer to contract for LNG on Train 3 of the Corpus
Christi Liquefaction Project," said Charif
Souki, Chairman and CEO. "We have entered into SPAs
aggregating approximately 8.42 mtpa of LNG and are in discussions
with additional counterparties for agreements that would commence
with Train 3. We expect to complete all 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 3 of the Corpus
Christi Liquefaction Project.
EDP, a vertically integrated utility company, is the largest
generator, distributor and supplier of electricity in Portugal and has significant operations in
electricity and gas in Spain. EDP
is the third largest electricity generation company and one of the
largest distributors of gas in the Iberian Peninsula. EDP is
a significant company in global energy markets, maintaining a
presence in 13 countries, serving more than 9.8 million electricity
customers from 1.2 million gas supply points and employing over
12,000 individuals worldwide. On December
31, 2013, EDP had an installed capacity of 23.0 GW.
Additional information about EDP can be found on its website
located at www.EDP.pt/en.
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 and 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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Trains
1-3
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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
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Completed
7.7 mtpa
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Completed
8.3 mtpa
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T5:
Completed
T6: 2015
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T1-T2:
Completed
T3: 1.54
mtpa
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- BG Gulf Coast LNG,
LLC
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4.2 mtpa
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1.3 mtpa
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- Gas Natural
Fenosa
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3.5 mtpa
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- KOGAS
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3.5 mtpa
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- GAIL (India)
Ltd.
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3.5 mtpa
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- Total Gas &
Power N.A.
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2.0 mtpa
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- Centrica
plc
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1.75 mtpa
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- PT
Pertamina
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1.52 mtpa
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- Endesa,
S.A.
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2.25 mtpa
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- Iberdrola,
S.A.
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0.76 mtpa
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- Gas Natural Fenosa
LNG SL
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1.50 mtpa
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- Woodside Energy
Trading Singapore
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0.85 mtpa
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- Electricite de
France, S.A.
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0.77 mtpa
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- EDP Energias de
Portugal S.A.
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0.77 mtpa
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EPC
contract
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Completed
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Completed
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2015
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Completed
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Financing
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Completed
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Completed
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2015
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- Equity
commitments
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Received
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- Debt
commitments
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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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2015
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2014/2015
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- 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
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Completed
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2015
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2015
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Commence
operations
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2015/2016
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2016/2017
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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.