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