HomeSite MapContact Us

  Investor Relations

  Cheniere Energy: LNG
  Stock Information
  Analyst Coverage
  News Releases
  Annual Reports
  SEC Filings
  Event Calendar
  Presentations
  Investor FAQ
  Information Request


  Cheniere Holdings: CQH

  Cheniere Partners: CQP
News Releases

Printer Friendly Version View printer-friendly version
<< Back
Cheniere and Woodside Sign 20-Year LNG Sale and Purchase Agreement
- Cheniere and Woodside sign SPA for LNG sales from Corpus Christi
- Woodside contracts for approximately 0.85 million tonnes per annum of LNG

HOUSTON, June 30, 2014 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that its subsidiary, Corpus Christi Liquefaction, LLC ("Corpus Christi Liquefaction"), has entered into a liquefied natural gas ("LNG") sale and purchase agreement ("SPA") with Woodside Energy Trading Singapore Pte Ltd ("Woodside") under which Woodside has agreed to purchase approximately 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 "Corpus Christi Liquefaction Project"). 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, Woodside will purchase LNG on a free on board ("FOB") basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto Woodside's vessels. The SPA has a term of twenty years commencing upon the date of first commercial delivery of the second train of the Corpus Christi Liquefaction Project, with an extension option of up to ten years. Deliveries from Train 2 are expected to occur in 2019.

"Woodside, the largest Australian independent oil and gas company, will join our portfolio of customers in the Corpus Christi Liquefaction Project," said Charif Souki, Chairman and CEO. "To date we have entered into SPAs aggregating approximately 6 mtpa of LNG volumes. 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."

The SPA 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 of the Corpus Christi Liquefaction Project (the "Corpus Christi FID").

Woodside is Australia's largest independent dedicated oil and gas company and one of the world's leading producers of LNG. Woodside operates the North West Shelf Project and Pluto LNG projects with a cumulative nameplate capacity of approximately 20.6 mtpa. As Operator of the Browse Joint Venture, Woodside is progressing floating liquefied natural gas (FLNG) as the preferred development concept to commercialise globally significant resources in the Browse Basin, located approximately 425 km offshore north of Broome in Western Australia. The Browse resources are estimated to contain gross (100%) contingent resources (2C) of 14.9 Tcf of dry gas and 441.2 million barrels of condensate. Woodside has interests in 11 vessels across its 2 operating LNG projects. Woodside operates an LNG trading operation in Singapore to manage the company's 3rd party LNG business. Woodside is the largest operator of oil and gas production in Australia. Woodside is based in Perth, Western Australia. Additional information about Woodside may be found on its website located at http://www.woodside.com.au.

 

Cheniere Energy, Inc. is a Houston-based energy company primarily engaged in LNG-related businesses, and owns and operates the Sabine Pass LNG terminal and Creole Trail Pipeline in Louisiana. Cheniere is pursuing related business opportunities both upstream and downstream of the Sabine Pass LNG terminal. Through its subsidiary, Cheniere Energy Partners, L.P., Cheniere is developing a liquefaction project at the Sabine Pass LNG terminal adjacent to the existing regasification facilities for up to six LNG trains, each of which will have a design production capacity of approximately 4.5 mtpa ("Sabine Pass Liquefaction Project"). Construction has begun on LNG Trains 1 through 4 at the Sabine Pass Liquefaction Project. Cheniere has also initiated a project to develop liquefaction facilities near Corpus Christi, Texas. The Corpus Christi Liquefaction Project is being designed and permitted for up to three LNG trains, with aggregate design production capacity of up to 13.5 mtpa of LNG and which would include three LNG storage tanks with capacity of 10.1 Bcfe and two LNG carrier docks. Commencement of construction for the Corpus Christi Liquefaction Project is subject, but not limited, to obtaining regulatory approvals, entering into long-term customer contracts sufficient to underpin financing of the project, obtaining financing, and Cheniere making a final investment decision. We believe LNG exports from the Corpus Christi Liquefaction Project could commence as early as 2018. Additional information about Cheniere Energy, Inc. may be found on its website located at http://www.cheniere.com.

 



Target Date



Sabine Pass Liquefaction


Corpus Christi 
Liquefaction

Milestone


Trains 
1 & 2


Trains  
3 & 4


Trains  
5 & 6



DOE export authorization


Received


Received


Received FTA
Pending Non-FTA


Received FTA
Pending Non-FTA

Definitive commercial agreements


Completed
7.7 mtpa


Completed
8.3 mtpa


T5: Completed
T6: 2014


2014

- BG Gulf Coast LNG, LLC


4.2 mtpa


1.3 mtpa





- Gas Natural Fenosa


3.5 mtpa







- KOGAS




3.5 mtpa





- GAIL (India) Ltd.




3.5 mtpa





- Total Gas & Power N.A.






2.0 mtpa



- Centrica plc






1.75 mtpa



- PT Pertamina








0.76 mtpa

- Endesa, S.A.








2.25 mtpa

- Iberdrola, S.A.








0.76 mtpa

- Gas Natural Fenosa LNG SL








1.50 mtpa

- Woodside Energy Trading Singapore








0.85 mtpa

EPC contract


Completed


Completed


2015


Completed

Financing






2015


2014

- Equity


Completed


Completed 





- Debt commitments


Received


 Received





FERC authorization









- FERC Order


Received


Received


2014/2015


2014/2015

- Certificate to commence construction


Received


Received





Issue Notice to Proceed


Completed


Completed


2015


2015

Commence operations


2015/2016


2016/2017


2018/2019


2018/2019

 

This press release contains certain statements that may include "forward-looking statements" within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, (i) statements regarding Cheniere's business strategy, plans and objectives, including the construction and operation of liquefaction facilities, (ii) statements regarding our expectations regarding regulatory authorizations and approvals, (iii) statements expressing beliefs and expectations regarding the development of Cheniere's LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements and (vi) statements regarding future discussions and entry into contracts. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere's periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.

Logo - http://photos.prnewswire.com/prnh/20090611/AQ31545LOGO 

SOURCE Cheniere Energy, Inc.

Investors: Randy Bhatia: 713-375-5479, or Christina Burke: 713-375-5104, or Media: Diane Haggard: 713-375-5259