Cheniere Energy Inc. (NYSE MKT: LNG) reports that its subsidiary, Corpus Christi Liquefaction LLC, has entered into a liquefied natural gas (LNG) sale and purchase agreement (SPA) with PT Pertamina under which Pertamina has agreed to purchase 0.8 million tonnes per annum of LNG once operations begin at the LNG export facility being developed near Corpus Christi, Texas.
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, Pertamina will purchase LNG on an FOB basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto Pertamina's vessels.
The SPA has a term of 20 years, beginning upon the date of first commercial delivery, along with an extension option of up to 10 years. Deliveries are expected to occur as early as 2018.