Spain-based Gas Natural Fenosa has agreed to buy around 1.5 million tonnes of liquefied natural gas (LNG) a year from Cheniere Energy’s Corpus Christi LNG export facility in Texas, US.
The deal has an initial term of 20 years with an extension option of about 10 years. Gas Natural Fenosa will buy LNG on a free on board basis for a purchase price indexed to the monthly Henry Hub price and a fixed component.
The proposed Corpus Christi liquefaction terminal has two phases with a total capacity of about 18 billion cubic metres. The first delivery of gas will start in 2019 after commissioning of the second liquefaction train at the terminal.
Cheniere Energy chairman and CEO Charif Souki said that Gas Natural Fenosa is the second foundation customer on Train 2 of the company’s Corpus Christi Liquefaction project.
"To date we have entered into SPAs aggregating approximately 5.3 million tonnes per annum of LNG volumes," Souki added.
"We are in advanced discussions with other counterparties and are working towards finalising additional agreements. We continue to expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015."
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By GlobalDataGas Natural Fenosa is already a foundation customer at Cheniere’s Sabine Pass Liquefaction project in Louisiana.
Cheniere has recently signed a similar agreement with Spanish firm Iberdrola who agreed to purchase an initial 400,00t/year increasing to 800,000t/year from the Corpus Christi facility.
