Cheniere Energy’s unit Corpus Christi Liquefaction has entered into an LNG sale and purchase agreement (SPA) with Gas Natural Fenosa under which GNF has agreed to purchase approximately 1.5 mtpa of LNG upon the commencement of operations of Train 2 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, Gas Natural Fenosa 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 Gas Natural Fenosa’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.
“Gas Natural Fenosa is the second foundation customer on Train 2 of our Corpus Christi Liquefaction Project being developed in Texas. This is in addition to being a foundation customer at the Sabine Pass Liquefaction project. Gas Natural Fenosa is a leading, integrated European natural gas and power utility and significant participant in natural gas and LNG markets worldwide,” said Charif Souki, Chairman and CEO of Cheniere.