Cheniere, EDF sign Corpus Christi LNG supply deal

Corpus Christi Liquefaction LLC (CCL), a subsidiary of Cheniere Energy Inc., Houston, has agreed to supply Electricite de France SA (EDF) with 380,000 tonnes/year of LNG on the start of operations of Train 2 of the LNG export facility under development near Corpus Christi, Tex.

Start-up of Train 3—which would raise the project’s aggregate production capacity to 13.5 million tpy—would result in an increase in the deal to 770,000 tpy and extension of the agreement term to 20 years, with an extension option of up to 10 years.

Under the agreement, EDF will purchase LNG on a FOB basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto EDF’s vessels.

Cheniere says deliveries from Train 3 are expected to occur as early as 2019.

“EDF is the first foundation customer on Train 3 of our [CCL] project being developed in Texas,” said Charif Souki, Cheniere chairman and chief executive officer.

“We have completed contracting for the first 2 trains of the [CCL] project and are in advanced discussions with other counterparties on finalizing additional agreements for Train 3. We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015,” Souki stated.

CCL has recently struck supply deals with Endesa Generacion SA of Spain (OGJ Online, Apr. 2, 2014); Iberdrola SA of Spain (OGJ Online, May 30, 2014); and Woodside of Australia (OGJ Online, July 1, 2014).

Cheniere says LNG exports from the CCL project could begin as early as 2018.

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