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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

-Total signs SPA that commences with the fifth train at Sabine Pass

-Total contracts for approximately half of the 4.5 mtpa Train 5 LNG volumes

PR Newswire

HOUSTON, Texas, Dec. 17, 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/.

Additional Information

Cheniere Partners owns 100 percent of the Sabine Pass LNG terminal located on
the Sabine Pass Channel in western Cameron Parish, Louisiana.  The Sabine Pass
LNG terminal has regasification and send-out capacity of 4.0 billion cubic
feet per day (Bcf/d) and storage capacity of 16.9 billion cubic feet
equivalent (Bcfe).  Cheniere Partners is developing a project to add
liquefaction and export capabilities adjacent to the existing infrastructure
at the Sabine Pass LNG terminal (the "Liquefaction Project").  The
Liquefaction Project was initially designed and permitted for up to four
modular LNG trains, each with a nominal capacity of approximately 4.5 mtpa. 
Sabine Liquefaction is now contemplating a fifth and sixth train.  The initial
Liquefaction Project is expected to be constructed with each LNG train
commencing operations approximately six to nine months after the previous
train.  In November 2011, Sabine Pass Liquefaction, LLC ("Sabine
Liquefaction") entered into a lump sum turnkey contract for the engineering,
procurement and construction of the first two trains of the project with
Bechtel Oil, Gas and Chemicals, Inc. ("Bechtel").  Sabine Liquefaction has
also entered into four long-term customer sale and purchase agreements
("SPAs") for a total of approximately 16.0 mtpa of LNG volumes, which
represents approximately 89 percent of the nominal LNG volumes.  The customers
include BG Gulf Coast LNG, LLC ("BG") for 5.5 mtpa, Gas Natural Fenosa for 3.5
mtpa, KOGAS for 3.5 mtpa and GAIL (India) Ltd. for 3.5 mtpa. In addition,
Sabine Liquefaction has entered into a SPA with Cheniere Marketing, LLC for up
to approximately 2.0 mtpa of LNG that is produced but not already committed to
third parties.  The BG and Cheniere Marketing SPAs commence with the start of
LNG train one operations and the Gas Natural Fenosa SPA commences with the
start of train two operations.  The KOGAS SPA commences with the start of
train three operations and the GAIL (India) Ltd. SPA commences with the start
of train four operations.  Total Gas & Power North America, Inc. ("Total") has
entered into an SPA for 2.0 mtpa that commences with the start of train five
operations.  Cheniere Partners issued a notice to proceed to Bechtel to
commence construction for the first two trains in August 2012.  Commencement
of construction for the third and fourth trains is subject, but not limited,
to entering into an EPC contract, to obtaining financing and Cheniere Partners
making a final investment decision.  Commencement of construction for the
fifth train is subject, but not limited, obtaining regulatory approvals,
entering into an EPC contract, obtaining financing and Cheniere Partners
making a final investment decision.   Cheniere Partners has placed
documentation pertaining to the Liquefaction Project, including the
applications and supporting studies, on its website located at
http://www.cheniereenergypartners.com.

Milestone                               Trains 1&2          Trains 3&4
  o DOE export authorization            Complete            Complete
  o Definitive commercial agreements    Completed 7.7 mtpa  Completed 8.3 mtpa
          - BG Gulf Coast LNG, LLC      4.2 mtpa            1.3 mtpa
          - Gas Natural Fenosa          3.5 mtpa
          - KOGAS                                           3.5 mtpa
          - GAIL (India) Ltd.                               3.5 mtpa
  o EPC contract                        Complete            4Q12
  o Financing commitments                                   1Q13
          - Equity                      Complete
          - Debt                        Complete
  o FERC authorization                  Complete            Complete
          - Certificate to commence     Complete            2013
construction
  o Issue NTP to Bechtel                Complete            2013
  o Commence operations                 2015/2016           2016/2017

Forward-Looking Statements

This press release contains certain statements that may include
"forward-looking statements" within the meanings of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
All statements, other than statements of historical fact, included herein are
"forward-looking statements." Included among "forward-looking statements" are,
among other things, (i) statements regarding Cheniere Partners' business
strategy, plans and objectives, including the construction and operation of
liquefaction facilities, (ii) statements regarding our expectations regarding
regulatory authorizations and approvals, (iii) statements expressing beliefs
and expectations regarding the development of Cheniere Partners' LNG terminal
and liquefaction business, (iv) statements regarding the business operations
and prospects of third parties, and (v) statements regarding future
discussions and entry into contracts.  Although Cheniere Partners believes
that the expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. Cheniere Partners' actual results
could differ materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those discussed in
Cheniere Partners' periodic reports that are filed with and available from the
Securities and Exchange Commission. You should not place undue reliance on
these forward-looking statements, which speak only as of the date of this
press release. Other than as required under the securities laws, Cheniere
Partners does not assume a duty to update these forward-looking statements.

 

 

 

SOURCE Cheniere Energy Partners, L.P.

Website: http://www.cheniere.com
Contact: Investors: Christina Burke: 713-375-5104, Nancy Bui: 713-375-5280,
Media: Diane Haggard: 713-375-5259
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