Cheniere Energy Inc. (NYSE MKT: LNG), through its subsidiary, Cheniere Marketing International LLP, has entered into a liquefied natural gas (LNG) sale and purchase agreement (SPA) with Central El Campesino, under which Central El Campesino would purchase approximately 0.6 million tonnes per annum of LNG delivered ex-ship for 20 years beginning in 2019 from the Corpus Christi Liquefaction Project currently under construction near Corpus Christi, Texas.
Central El Campesino is developing a 640 MW gas-fired combined-cycle power plant in Chile, which is expected to provide power into Chile’s Central Interconnected System. In the December 2014 power auction, Central El Campesino won a bid to sell approximately 480 MW to local distribution companies, which would underpin the construction of the power plant. The LNG would be delivered, stored, and regasified at the proposed floating storage regasification unit (FSRU), Penco Lirquén LNG Terminal.
The Central El Campesino power plant is being developed by the Chilean company Biobiogenera in association with Electricite de France (EDF). In order to reach a final investment decision and begin construction on the Central El Campesino power plant and the Penco Lirquén LNG Terminal, both projects must receive regulatory approvals and obtain financing. Cheniere is a 50% partner in the Penco Lirquén LNG Terminal.