Cheniere and Gas Natural Fenosa Sign 20-Year LNG Sale and Purchase Agreement

 Cheniere and Gas Natural Fenosa Sign 20-Year LNG Sale and Purchase Agreement

- Cheniere and Gas Natural Fenosa sign SPA for LNG sales from Corpus Christi
Train 2

- Gas Natural Fenosa contracts for approximately 1.5 million tonnes per annum
of LNG

PR Newswire

HOUSTON, June 2, 2014

HOUSTON, June 2, 2014 /PRNewswire/ --Cheniere Energy, Inc. ("Cheniere") (NYSE
MKT: LNG) announced today that its subsidiary, Corpus Christi Liquefaction,
LLC ("Corpus Christi Liquefaction"), has entered into a liquefied natural gas
("LNG") sale and purchase agreement ("SPA") with Gas Natural Fenosa LNG SL
("Gas Natural Fenosa") under which Gas Natural Fenosa has agreed to purchase
approximately 1.5 million tonnes per annum ("mtpa") of LNG upon the
commencement of operations of Train 2 from the LNG export facility being
developed near Corpus Christi, Texas (the "Corpus Christi Liquefaction
Project"). 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, Gas Natural Fenosa will purchase LNG on a free on board ("FOB")
basis for a purchase price indexed to the monthly Henry Hub price plus a fixed
component. LNG will be loaded onto Gas Natural Fenosa's vessels. The SPA has a
term of twenty years commencing upon the date of first commercial delivery of
the second train of the Corpus Christi Liquefaction Project, with an extension
option of up to ten years. Deliveries from Train 2 are expected to occur in
2019.

"Gas Natural Fenosa is the second foundation customer on Train 2 of our Corpus
Christi Liquefaction Project being developed in Texas. This is in addition to
being a foundation customer at the Sabine Pass Liquefaction project. Gas
Natural Fenosa is a leading, integrated European natural gas and power utility
and significant participant in natural gas and LNG markets worldwide," said
Charif Souki, Chairman and CEO. "To date we have entered into SPAs aggregating
approximately 5.3 mtpa of LNG volumes. We are in advanced discussions with
other counterparties and are working towards finalizing additional agreements.
We continue to expect to complete all necessary steps to reach a final
investment decision and begin construction by early 2015."

The SPA is subject to certain conditions precedent, including but not limited
to Corpus Christi Liquefaction receiving regulatory approvals, securing
necessary financing arrangements and making a final investment decision to
construct the second train of the Corpus Christi Liquefaction Project (the
"Corpus Christi FID").

Gas Natural Fenosa is one of the leading multinational companies in the gas
and electricity sector. The company operates in more than 25 countries, has
more than 20 million customers and has 15.4 GW of installed power. It is the
largest integrated gas and electricity company in Spain and Latin America, the
leading marketer of natural gas on the Iberian Peninsula, and one of the
largest distributors of natural gas in Latin America. Gas Natural Fenosa is a
company of reference for LNG markets in the Atlantic and Mediterranean basins,
where it operates 30 billion cubic meters (bcm). Additional information about
Gas Natural Fenosa may be found on its website located at
http://www.gasnaturalfenosa.com.

Cheniere Energy, Inc. is a Houston-based energy company primarily engaged in
LNG-related businesses, and owns and operates the Sabine Pass LNG terminal and
Creole Trail Pipeline in Louisiana. Cheniere is pursuing related business
opportunities both upstream and downstream of the Sabine Pass LNG terminal.
Through its subsidiary, Cheniere Energy Partners, L.P., Cheniere is developing
a liquefaction project at the Sabine Pass LNG terminal adjacent to the
existing regasification facilities for up to six LNG trains, each of which
will have a design production capacity of approximately 4.5 mtpa ("Sabine Pass
Liquefaction Project"). Construction has begun on LNG Trains 1 through 4 at
the Sabine Pass Liquefaction Project. Cheniere has also initiated a project to
develop liquefaction facilities near Corpus Christi, Texas. The Corpus Christi
Liquefaction Project is being designed and permitted for up to three LNG
trains, with aggregate design production capacity of up to 13.5 mtpa of LNG
and which would include three LNG storage tanks with capacity of 10.1 Bcfe and
two LNG carrier docks. Commencement of construction for the Corpus Christi
Liquefaction Project is subject, but not limited to, obtaining regulatory
approvals, entering into long-term customer contracts sufficient to underpin
financing of the project, obtaining financing, and Cheniere making a final
investment decision. We believe LNG exports from the Corpus Christi
Liquefaction Project could commence as early as 2018. Additional information
about Cheniere Energy, Inc. may be found on its website located at
http://www.cheniere.com.

                       Target Date
                       Sabine Pass Liquefaction                Corpus Christi
                                                               Liquefaction
                       Trains     Trains         Trains
Milestone
                       1 & 2      3 & 4          5 & 6
                                                 T5: Received
DOE export                                       FTA           Received FTA
authorization          Received   Received                     Pending Non-FTA
                                                 Pending
                                                 Non-FTA
                       Completed                 T5:
Definitive commercial             Completed 8.3  Completed     2014
agreements             7.7 mtpa   mtpa
                                                 T6: 2014
- BG Gulf Coast LNG,   4.2 mtpa   1.3 mtpa
LLC
- Gas Natural Fenosa   3.5 mtpa
- KOGAS                           3.5 mtpa
- GAIL (India) Ltd.               3.5 mtpa
- Total Gas & Power                              2.0 mtpa
N.A.
- Centrica plc                                   1.75 mtpa
- PT Pertamina                                                 0.8 mtpa
- Endesa, S.A.                                                 2.25 mtpa
- Iberdrola, S.A.                                              0.8 mtpa
- Gas Natural Fenosa                                           1.5 mtpa
LNG SL
EPC contract           Completed  Completed      2015          Completed
Financing                                        2015          2014
- Equity               Completed  Completed
- Debt commitments     Received   Received
FERC authorization
- FERC Order           Received   Received       2014/2015     2014/2015
- Certificate to       Received   Received
commence construction
Issue Notice to        Completed  Completed      2015          2015
Proceed
Commence operations    2015/2016  2016/2017      2018/2019     2018/2019

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's 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's LNG terminal and pipeline
businesses, including liquefaction facilities, (iv) statements regarding the
business operations and prospects of third parties, (v) statements regarding
potential financing arrangements and (vi) statements regarding future
discussions and entry into contracts. Although Cheniere 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's 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's 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 does not assume a duty to update these
forward-looking statements.

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SOURCE Cheniere Energy, Inc.

Website: http://www.cheniere.com
Contact: Investors: Randy Bhatia: 713-375-5479 Christina Burke: 713-375-5104;
or Media: Diane Haggard: 713-375-5259
 
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