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Corpus Christi and EDF Sign 20-Year SPA




by:
Sutherland Asbill Brennan LLP - Washington Office

 
July 24, 2014

Previously published on July 18, 2014

Cheniere Energy, Inc. announced in a news release that its subsidiary, Corpus Christi Liquefaction, LLC, entered into a liquefied natural gas (“LNG”) sale and purchase agreement (“SPA”) with Électricité de France, S.A. (“EDF”).  Under the SPA, EDF has agreed to purchase approximately 0.38 million tonnes per annum (“mtpa”) of LNG upon the commencement of operations of Train 2 of the LNG export facility being developed near Corpus Christi, Texas.  Upon the commencement of operations of Train 3, EDF will purchase approximately 0.77 mtpa of LNG.

EDF will purchase LNG on a free on board basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component.  The term of the SPA will extend for twenty years from the date of first commercial delivery from Train 3.  Deliveries from Train 3 are expected to occur in 2019.



 

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