Houston-based Cheniere Energy Inc. announced that its subsidiary, Corpus Christi Liquefaction LLC, entered into a 20-year LNG sale and purchase agreement (SPA) with Woodside Energy Trading Singapore Pte Ltd. Under the agreement, Woodside agreed to purchase about 0.85 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. The facility is being designed for up to three trains with production capacity of 13.5 mtpa. Deliveries from Train 2 are expected to occur in 2019.
Woodside will purchase LNG on a free on board basis for a price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto Woodside's vessels. The agreement is subject to certain conditions precedent, including but not limited to Corpus Christi Liquefaction receiving regulatory approvals, securing necessary financing arrangements and making a final investment decision to construct Train 2.
“To date we have entered into SPAs aggregating approximately 6 mtpa of LNG volumes,” said Charif Souki, Cheniere chairman and CEO. “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.”
Recommended Reading
U.S. Shale-catters to IPO Australian Shale Explorer on NYSE
2024-05-04 - Tamboran Resources Corp. is majority owned by Permian wildcatter Bryan Sheffield and chaired by Haynesville and Eagle Ford discovery co-leader Dick Stoneburner.
Exxon Shale Exec Details Plans for Pioneer’s Acreage, 4-mile Laterals
2024-05-03 - Exxon Mobil plans to drill longer, more capital efficient wells in the Midland Basin after a major boost from the $60 billion Pioneer Natural Resources acquisition. Data shows that Exxon is a leading operator drilling 4-mile laterals in the Permian’s Delaware Basin.
Infrastructure Company Savage Acquires Houston’s Texon
2024-05-03 - Texon, a midstream service provider, will continue operations under its legacy brand.
1Q24 Dividends Declared in the Week of April 29
2024-05-03 - With earnings season in full swing, upstream and midstream companies are declaring quarterly dividends. Here is a selection of dividends announced in the past week.
Pitts: US, Qatar Face off in LNG ‘Olympics’
2024-05-03 - In the LNG exporting space, the U.S. is squaring off with its fiercest competitor, Qatar, with both countries expected to outpace Australia