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Corpus Christi LNG Terminal Signs Another Spanish Offtaker

Cheniere Energy Inc.'s Corpus Christi Liquefaction LLC has signed up its second foundation customer for the second train of its liquefied natural gas (LNG) export terminal being developed near Corpus Christi, TX.

Spain's Gas Natural Fenosa LNG LS agreed to buy 1.5 million tonnes per annum (mtpa) of LNG from the project's second train once it begins operation. The deal follows one announced last week between Corpus Christi Liquefaction and Spain's Iberdrola SA (see Daily GPIMay 30). The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate capacity of 13.5 mtpa.

Gas Natural Fenosa will buy LNG on a free on board (FOB) basis for a price indexed to the Henry Hub plus a fixed component. LNG will be loaded onto Gas Natural Fenosa's vessels. The SPA has a term of 20 years commencing upon the date of first commercial delivery of the second train of the project, with an extension option of up to 10 years. Deliveries from the second train are expected to begin in 2019.

Gas Natural Fenosa also is a foundation customer of Cheniere's Sabine Pass Liquefaction project in Louisiana. The integrated European gas and power utility is present in natural gas and LNG markets worldwide.

"To date we have entered into SPAs aggregating approximately 5.3 mtpa of LNG volumes," said Cheniere CEO Charif Souki. "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."

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