Cheniere Energy Partners, L.P. has entered into a LNG sale and purchase agreement (SPA) with Gas Natural Aprovisionamientos, a subsidiary of Gas Natural Fenosa, under which Gas Natural Fenosa has agreed to purchase 3.5 million tpa of LNG. Sabine Liquefaction is developing liquefaction capabilities to produce 9 milion tpa of LNG in the first phase of its project at the Sabine Pass LNG terminal owned by Cheniere Partners.
Under the agreement, Gas Natural Fenosa will pay Sabine Liquefaction a fixed sales charge for the full annual contract quantity and will also pay a contract sales price for LNG purchases based on the applicable Henry Hub index traded on the New York Mercantile Exchange. LNG will be loaded onto Gas Natural Fenosa'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. LNG deliveries are expected to commence in 2016.
"We welcome Gas Natural Fenosa as the next foundation customer for our Sabine Pass liquefaction project. Gas Natural Fenosa is a leading, integrated natural gas and power utility and a significant participant in the natural gas and LNG markets," said Charif Souki, Chairman and CEO. "With this agreement and the previously announced agreement with BG Gulf Coast, LLC, we have reached our contract capacity target for the first phase of our project. We will now proceed towards making a final investment decision in order to start construction on the first two liquefaction trains in early 2012."
Gas Natural Fenosa is the biggest distributor of natural gas in Latin America. With a fleet of 10 LNG tankers, it is a company of reference for LNG/NG in the Atlantic and Mediterranean basins, where it operates 30 billion m3.
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