Cheniere Energy Partners LP's Sabine Pass Liquefaction LLC has struck agreements with Total Gas & Power North America Inc. whereby Sabine Liquefaction would progressively gain access to Total's sendout capacity provided under its terminal use agreement (TUA) with Sabine Pass LNG LP.

The agreements would provide Sabine Liquefaction with additional berthing and storage capacity at the Sabine Pass liquefied natural gas (LNG) terminal (see Daily GPI, Aug. 13), which may be used to accommodate the development of a fifth liquefaction train, provide increased flexibility in managing LNG cargo loading and unloading activity starting with the commencement of commercial operations of the third liquefaction train, Cheniere said Tuesday.

"These agreements with Total make further expansion of our LNG export capabilities at the Sabine Pass LNG terminal possible as we will have access to additional capacity required to service another liquefaction train," said Cheniere CEO Charif Souki. "Additionally, these arrangements will enhance our flexibility for managing berthing and storage capacity at the Sabine Pass LNG terminal while allowing Total to retain some of its rights and access to the facility."

Sabine Liquefaction would gradually obtain access to Total's capacity, with access to 38 Bcf/year effective immediately, approximately 195 Bcf/year effective upon commercial operations of the third liquefaction train and substantially all of Total's capacity upon the start of commercial operations of a potential fifth train at the facility.

From the commencement of commercial operations of the third liquefaction train, Sabine Liquefaction would pay a monthly fee of $2.5 million to Total and from the commencement of commercial operations of a potential fifth train, Sabine Liquefaction would reimburse Total for all of its payments due to Sabine Pass LNG under the Total TUA. From the commencement of the potential fifth train, Total would retain the right to unload up to 195 Bcf/year of LNG at Sabine.

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