Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Cheniere Energy, Inc. | cei2014form8kgasnatspa.htm |
| EX-10.1 - EXHIBIT 10.1 - Cheniere Energy, Inc. | cei2014form8kex101gasnatspa.htm |
Exhibit 99.1
CHENIERE ENERGY, INC. NEWS RELEASE
Cheniere and Gas Natural Fenosa Sign 20-Year LNG Sale and Purchase Agreement
▪ | Cheniere and Gas Natural Fenosa sign SPA for LNG sales from Corpus Christi Train 2 |
▪ | Gas Natural Fenosa contracts for approximately 1.5 million tonnes per annum of LNG |
Houston, Texas - June 2, 2014 - 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 Gas Natural Fenosa LNG SL (“Gas Natural Fenosa”) under which Gas Natural Fenosa has agreed to purchase approximately 1.5 million tonnes per annum (“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"). 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. “To date we have entered into SPAs aggregating approximately 5.3 mtpa of LNG volumes. We are in advanced discussions with other counterparties and are working towards finalizing additional agreements. We continue to 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 the second train of the Corpus Christi Liquefaction Project (the “Corpus Christi FID”).
Gas Natural Fenosa is one of the leading multinational companies in the gas and electricity sector. The company operates in more than 25 countries, has more than 20 million customers and has 15.4 GW of installed power. It is the largest integrated gas and electricity company in Spain and Latin America, the leading marketer of natural gas on the Iberian Peninsula, and one of the largest distributors of natural gas in Latin America. Gas Natural Fenosa is a company of reference for LNG markets in the Atlantic and Mediterranean basins, where it operates 30 billion cubic meters (bcm). Additional information about Gas Natural Fenosa may be found on its website located at http://www.gasnaturalfenosa.com.
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 of LNG and which 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.
Target Date | ||||||||
Sabine Pass Liquefaction | Corpus Christi Liquefaction | |||||||
Milestone | Trains 1 & 2 | Trains 3 & 4 | Trains 5 & 6 | |||||
DOE export authorization | Received | Received | T5: Received FTA Pending Non-FTA | Received FTA; Pending Non-FTA | ||||
Definitive commercial agreements | Completed 7.7 mtpa | Completed 8.3 mtpa | T5: Completed T6: 2014 | 2014 | ||||
- BG Gulf Coast LNG, LLC | 4.2 mtpa | 1.3 mtpa | ||||||
- Gas Natural Fenosa | 3.5 mtpa | |||||||
- KOGAS | 3.5 mtpa | |||||||
- GAIL (India) Ltd. | 3.5 mtpa | |||||||
- Total Gas & Power N.A. | 2.0 mtpa | |||||||
- Centrica plc | 1.75 mtpa | |||||||
- PT Pertamina | 0.8 mtpa | |||||||
- Endesa, S.A. | 2.25 mtpa | |||||||
- Iberdrola, S.A. | 0.8 mtpa | |||||||
- Gas Natural Fenosa LNG SL | 1.5 mtpa | |||||||
EPC contract | Completed | Completed | 2015 | Completed | ||||
Financing | 2015 | 2014 | ||||||
- Equity | Completed | Completed | ||||||
- Debt commitments | Received | Received | ||||||
FERC authorization | ||||||||
- FERC Order | Received | Received | 2014/2015 | 2014/2015 | ||||
- Certificate to commence construction | Received | Received | ||||||
Issue Notice to Proceed | Completed | Completed | 2015 | 2015 | ||||
Commence operations | 2015/2016 | 2016/2017 | 2018/2019 | 2018/2019 | ||||
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.
CONTACTS:
Investors: Randy Bhatia: 713-375-5479 Christina Burke: 713-375-5104
Media: Diane Haggard: 713-375-5259