Under the 20-year agreement, Gas Natural Fenosa will buy approximately 1.5 million tons per annum (mtpa) of LNG upon following the commencement of Train 2 operations from the LNG export facility being developed near Corpus Christi, Texas, US.
The LNG export plant, Corpus Christi Liquefaction Project, will be permitted for up to three trains and has an aggregate design production capacity of 13.5 mtpa of LNG.
To be loaded onto Gas Natural Fenosa’s vessels, the LNG will be purchased on a free on board (FOB) basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component.
The SPA has an extension option of up to ten years while the Train 2 deliveries are scheduled to occur in 2019.
Cheniere Energy chairman and CEO Charif Souki said Gas Natural Fenosa is the second foundation customer of Corpus Christi Liquefaction Project on Train 2.
"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," Souki added.
"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."
