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Corpus Christi Inks Second Pertamina LNG Sales Agreement

Cheniere Energy Inc.'s Corpus Christi Liquefaction LLC has struck a second deal to sell liquefied natural gas (LNG) to Indonesia's state-owned PT Pertamina (Persero).

Under a new sale and purchase agreement (SPA), Pertamina has agreed to buy 0.76 million tonnes per annum (mtpa) of LNG upon the commencement of operations of the second train of the LNG export facility being developed near Corpus Christi, TX.

The SPA is in addition to the previously announced SPA under which Pertamina will buy 0.76 mtpa (see Daily GPI, Dec. 6, 2013), bringing the total quantity of LNG sold to Pertamina under the two agreements to 1.52 mtpa. The Corpus Christi project is being designed and permitted for up to three trains, with aggregate capacity of 13.5 mtpa.

Pertamina agreed to buy LNG on a free on board basis to be loaded onto its 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."

The SPA has a term of 20 years with an extension option of up to 10 years. Deliveries from the second train are expected to begin in 2019.

Woodside Energy Trading Singapore Pte Ltd. recently agreed to take 0.85 million mtpa from the Corpus Christi project's second train (see Daily GPI, June 30).

"To date we have entered into SPAs aggregating approximately 7 mtpa of LNG volumes, completing our long-term contracting for the first two trains of the Corpus Christi Liquefaction Project," said Cheniere CEO Charif Souki. "We expect to complete all remaining necessary steps to reach a final investment decision and begin construction by early 2015."

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

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