Iberdrola Agrees to 20 Year €4.1B LNG Export Deal with Cheniere
Will buy 1 billion cubic meters/year from Corpus Christi liquefaction plant
NEW GLOUCESTER, Maine, June 2, 2014
NEW GLOUCESTER, Maine, June 2, 2014 /PRNewswire/ -- IBERDROLA and a subsidiary
of Cheniere Energy, Inc. has signed a contract for the supply of approximately
1 bcm (billion cubic meters) of liquefied natural gas (LNG) per year beginning
in 2019. The 20-year agreement, valued at around €4.1 billion, involves the
supply of LNG to Iberdrola at the Corpus Christi liquefaction plant that
Cheniere will build near Corpus Christi, Texas.
Electricity/natural gas transmission & distribution + renewable energy too.
The contract, signed at IBERDROLA's offices in Madrid by the company's global
energy management director Angel Chiarri and Meg Gentle, Marketing Executive
Vice President at Cheniere, will serve to substitute part of the LNG covered
by supply agreements that will expire during this period.
IBERDROLA will receive an initial volume of 0.5 bcm of LNG once the first
train is operating, starting as early as 2018. Iberdrola will then receive an
additional 0.5 bcm of LNG once operations start on the second train. Cheniere
expects to build up to three trains at the Corpus Christi plant capable of
producing in aggregate up to 13.5 million tons per annum (mtpa).
The contract, linked to the Henry Hub gas price in the US, is FOB (Free on
Board), with open destination, although the LNG will be used essentially to
supply IBERDROLA markets in the UK and Spain.
At the end of March this year, IBERDROLA had 3.6 million customers for gas
around the world (2.2 million in the UK. 0.8 million in Spain and 0.6 million
in the US), as well as combined cycle gas plants with a total capacity of
nearly 13,000 megawatts (5,900 MW in Spain, 5,050 MW in Mexico and 2,000 MW in
the UK). In 2013, the Group supplied a total of 7.6 bcm of gas worldwide.
IBERDROLA has arranged a number of long term LNG supply contracts in recent
years, with companies including ENI, Sonatrach, Nigeria LNG and Statoil,
enabling it to sign important supply accords with BP to supply 0.5 bcm a year
at Spanish regasification plants over 10 years, and with Dong Energy to supply
1bcm a year at the Rotterdam regasification plant, also over 10 years.
Through major agreements such as the one signed today with Cheniere, IBERDROLA
has consolidated its role as one of the world's leading energy operators, with
operations in around 30 countries, 45,000 MW of installed capacity, 32 million
customers and more than 28,000 employees.
Under the Strategic Outlook for 2014-2016 announced in London last February,
the Group will invest a net €9.6 billion during this period, centered mainly
in regulated markets with a focus on the UK, US and Mexico.
Iberdrola USA is the U.S. subsidiary of global energy leader Iberdrola, S.A.
The Iberdrola USA companies employ about 5,000 people with operations in 24
states from New England to the West Coast, providing electricity generation,
transmission and distribution, natural gas storage and distribution, and
energy services. For more information, please visit our website:
www.iberdrolausa.com. Follow us on Twitter: @IberdrolaUSA
Photo - http://photos.prnewswire.com/prnh/20140128/MM54425LOGO
SOURCE Iberdrola USA
Contact: Dan Hucko, Daniel.Hucko@IberdrolaUSA.com, 585.724.8825
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