Woodside Energy Trading Singapore Pte Ltd. has made a liquefied natural gas (LNG) sale and purchase agreement (SPA) with Cheniere Energy Inc.’s Corpus Christi Liquefaction LLC for LNG from the second train at the export terminal in development near Corpus Christi, TX.

The deal is for 0.85 million tonnes per annum (mtpa) with deliveries to begin once the second train enters service. The project is being designed and permitted for up to three trains, with aggregate design capacity of 13.5 mtpa.

“To date we have entered into SPAs aggregating approximately 6 mtpa of LNG volumes [at Corpus Christi],” said Cheniere CEO Charif Souki. “We are in advanced discussions with other counterparties and are working towards finalizing additional agreements. We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015.”

A decision on Corpus Christ’s application at the Federal Energy Regulatory Commission is expected by the end of the year (see Daily GPI, June 19).

Cheniere Energy shares hit an all-time high of $72.70 Monday morning following the news but fell back to close at $71.70, a gain of 2.5% for the day.

Woodside will purchase LNG on a free on board basis for loading onto Woodside vessels. “The contract sales price will be equal to $3.50 plus 115% of the final settlement price for the New York Mercantile Exchange Henry Hub natural gas futures contract for the month in which the relevant cargo is scheduled,” Cheniere said in a regulatory filing. “A portion of the fixed fee component of the contract sales price will be subject to an annual adjustment for inflation.” These terms are similar to previous SPAs for Corpus Christi.

The SPA has a term of 20 years with an extension option of up to 10 years. Deliveries from Train 2 are expected to occur in 2019, according to Cheniere.

Parent company Woodside is Australia’s largest independent dedicated oil and gas company and one of the world’s leading producers of LNG. Its LNG trading operation in Singapore manages the company’s third-party LNG business.