Global Leader in International LNG Industry News

posted in:

  • Home>
  • LNG News
  • >
  • North America,
  • >
  • Cheniere and Total sign 20-year LNG sale and purchase agreement for LNG exports from Sabine Pass

Cheniere and Total sign 20-year LNG sale and purchase agreement for LNG exports from Sabine Pass

Tuesday, Dec 18, 2012

HOUSTON, Texas, Dec. 17, 2012 /PRNewswire/ -- Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP) announced today that its subsidiary, Sabine Pass Liquefaction, LLC ("Sabine Liquefaction"), has entered into a liquefied natural gas ("LNG") sale and purchase agreement ("SPA") with Total Gas & Power North America, Inc. ("Total") under which Total has agreed to purchase 91,250,000 MMBtu of LNG annually plus 13,500,000 MMBTU of seasonal LNG volumes upon the commencement of train five operations.  These volumes represent approximately 2.0 million tonnes per annum ("mtpa") of the approximately 4.5 mtpa of nominal capacity of train five being developed at Sabine Liquefaction.

Sabine Liquefaction is currently developing five liquefaction trains adjacent to the Sabine Pass LNG terminal.  The first two trains are under construction and the third and fourth trains are expected to commence construction in 2013.  As previously announced, a partial assignment agreement was entered into between Sabine Liquefaction and Total, allowing Sabine Liquefaction to gain access to services under Total's terminal use agreement with Sabine Pass LNG, L.P., including Total's berthing and storage capacity, making further expansion of the LNG export capabilities at the Sabine Pass LNG terminal possible.

Under the SPA, Total will purchase LNG on an FOB basis, under which LNG will be loaded onto Total's vessels, for a purchase price indexed to the monthly Henry Hub price plus a fixed component.  The SPA has a term of twenty years commencing upon the date of first commercial delivery for train five, and an extension option of up to ten years.

Deliveries from train five are expected to occur as early as 2018.  The SPA is subject to certain conditions precedent, including but not limited to Sabine Liquefaction receiving regulatory approvals, securing necessary financing arrangements, making a final investment decision, and issuing a notice to proceed for train five.

"Total, one of our longstanding customers at Sabine Pass, will become the next foundation customer for LNG exports as Sabine Liquefaction further expands its liquefaction project," said Charif Souki, Chairman and CEO. "Total recently agreed to partially assign its rights to us in order to accommodate further development of Sabine Liquefaction's facility and has subsequently contracted for approximately half of the capacity for a fifth train.  Based on this contract and additional indications of interest, we are moving forward with the development of train five."

Total is a leading producer in the LNG sector, with strong and diversified positions along the LNG chain. In addition to Australia, Total has interests in LNG projects in Indonesia, Nigeria, Norway, Oman, Qatar, the United Arab Emirates, Yemen, Angola and Russia.  Total has also secured long-term access to LNG re-gasification capacity located in key LNG importing countries. Total is developing trading, marketing and logistics businesses to offer its natural gas and LNG production directly to customers. More Information on Total may be found at http://www.total.com/.

SOURCE Cheniere Energy Partners, L.P.

To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today

posted in:

  • Home>
  • LNG News
  • >
  • North America,
  • >
  • Cheniere and Total sign 20-year LNG sale and purchase agreement for LNG exports from Sabine Pass

Other LNG News

Gazprom to meet increased European demand and secure additional gas amounts for premium Asia-Pacific market 23-04-2014
ConocoPhillips approved for Alaska LNG exports 17-04-2014
Höegh LNG - signing of USD 412 million senior secured credit facility 14-04-2014
Magnolia LNG Project technical services agreement signed with SKEC Group 14-04-2014
Cheniere and Endesa sign 20-year LNG sale and purchase agreement 08-04-2014
Yamal LNG and Fluxys sign cooperation agreement on LNG transshipment 07-04-2014
Canada's West Coast can benefit from marine use of liquefied natural gas (LNG) 03-04-2014
Cheniere and Endesa sign 20-year LNG sale and purchase agreement 03-04-2014
Yokogawa to participate in Gastech 2014 −your global partner in LNG automation 31-03-2014
LNG market development – one of core businesses 28-03-2014