Cheniere Energy Inc.’s Corpus Christi Liquefaction LLC has made a liquefied natural gas (LNG) sale and purchase agreement (SPA) with EDP Energias de Portugal S.A. (EDP).

EDP agreed to purchase 0.77 million tonnes per annum (mtpa) of LNG upon the commencement of operations of Train 3 of the LNG export facility being developed near Corpus Christi, TX. The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate capacity of 13.5 mtpa.

Under the SPA, EDP will purchase LNG on a free on board basis at a price indexed to the monthly Henry Hub price plus a fixed component. The price is to be equal to $3.50 plus 115% of the Henry Hub price for the month in which the relevant cargo is scheduled, according to a regulatory filing. A portion of the fixed fee is to be subject to an annual inflation adjustment. These terms are in line with those of other contracts signed by Cheniere.

The term of the SPA will extend for 20 years beyond the date of first commercial delivery of the project’s third train, with an extension option of up to 10 years. Deliveries from Train 3 are expected to occur as early as 2019.

“EDP, Portugal’s largest supplier of electricity and second-largest supplier of gas, is the second customer to contract for LNG on Train 3 of the Corpus Christi Liquefaction Project [see Daily GPI, July 18],” said Cheniere CEO Charif Souki. “We have entered into SPAs aggregating approximately 8.42 mtpa of LNG and are in discussions with additional counterparties for agreements that would commence with Train 3. We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015.”