Houston-based Cheniere Energy, Inc. (Cheniere) announced that its subsidiary, Corpus Christi Liquefaction, LLC (Corpus Christi Liquefaction), has entered into a sales and purchase agreement (SPA) with Électricité de France, S.A. (EDF). EDF has agreed to buy 0.38 million tonnes per annum (mtpa) upon the completion of the second train and increasing the amount to 0.77 mtpa upon the completion of the third train from the LNG liquefaction facility being developed near Corpus Christi, Texas. The proposed 3-train, 13.5 mtpa facility is in the process of being designed and permitted, and the 20-year SPA is subject to conditions precedent such as the plan receiving necessary regulatory appeals, financing, and a final investment decision for train 3. EDF will purchase LNG on a free on board (FOB) basis at a Henry Hub-indexed price with a fixed component added, using their own vessels to transport the gas.
This sale comes on the heels of other recent sales, most recently the 0.85 mtpa SPA entered into with Woodside Energy and the 0.76 mtpa Pertamina add-on SPA agreed upon earlier this month. 7.65 mtpa of LNG has been contracted from the Corpus Christi Export terminal to date. Writing in the press release, project Chairman and CEO Charif Souki expects to "complete all necessary steps to reach a final investment decision and begin construction by early 2015." Corpus Christi Liquefaction has not yet received Federal Energy Regulatory Commission (FERC) approval. It hopes to commence operation of the plant in 2018 or 2019.