Cheniere Energy announced that its subsidiary, Corpus Christi Liquefaction has entered into a liquefied natural gas sale and purchase agreement with PT Pertamina under which Pertamina has agreed to purchase approximately 0.8 million tonnes per annum of LNG upon the commencement of operations from the LNG export facility being developed near Corpus Christi, Texas.
The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5 mtpa of LNG.
Under the SPA, Pertamina will purchase LNG on an FOB basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto Pertamina’s vessels. The SPA has a term of twenty years commencing upon the date of first commercial delivery and an extension option of up to ten years. Deliveries are expected to occur as early as 2018.
“Pertamina, an Indonesian state-owned energy company, is the first foundation customer for our Corpus Christi Liquefaction Project being developed in Texas. Indonesia has historically been one of the largest exporters of LNG and is now in the process of converting one of their export terminals into an LNG receiving terminal. Pertamina’s SPA is the first long-term commitment made to procure LNG from the international market for delivery into Indonesia. We look forward to supplying LNG to meet Indonesia’s growing energy needs and to supporting Indonesia’s efforts to enhance its energy security,” said Charif Souki, Chairman and CEO. “Furthermore, this SPA is a significant milestone for our project, and we are continuing to make progress. We are nearing completion of the regulatory process and are continuing to work towards finalizing additional commercial agreements. We expect to complete all necessary steps to begin construction on our second LNG export terminal by the second half of 2014.”
[mappress] LNG World News Staff, December 05, 2013