Cheniere Energy Inks Second LNG Deal with Pertamina

On Jul 1, Corpus Christi Liquefaction LLC, an affiliate of midstream energy company Cheniere Energy Inc. LNG – Snapshot Report announced that it has signed a liquefied natural gas “LNG” sale and purchase agreement SPA with the Indonesian state-owned oil and natural gas company, PT Pertamina. This deal follows a similar agreement with Woodside Petroleum Limited Read: Cheniere Energy, Woodside Pen 20-Yr LNG Sale and Purchase Deal. Cheniere Energy shares gained 4.5% on the NYSE after these SPAs.Per the 20-year agreement, Pertamina will buy roughly 0.76 million tons of LNG per annum mpta from Corpus Christi Liquefaction’s under-construction export terminal near Corpus Christi, TX. However, the purchase will take place when the second LNG train of the facility is operational. This is the second LNG deal of Cheniere Energy with Pertamina that brings the total sale to about 1.52 mpta.The Corpus Christi Liquefaction project is being developed to facilitate operations of up to three trains, with a total capacity to produce 13.5 mtpa of LNG. Cheniere Energy revealed that the agreement can be extended up to 10 years. Moreover, the company added that it would sell LNG on a free-on-board basis, under which it would incur the shipping costs. LNG from the second train will be delivered to Pertamina from 2019.  

via Cheniere Energy Inks Second LNG Deal with Pertamina – July 3, 2014 – Zacks.com.

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