Cheniere Signs 20-Year LNG Sale and Purchase Deal With Iberdrola

Cheniere Energy Inc. (LNG), on track to be the first company to liquefy and export natural gas produced from the U.S. shale boom, signed a 20-year sale and purchase agreement with Iberdrola SA.

Spain’s biggest utility agreed to purchase about 400,000 metric tons a year of liquefied natural gas from Train 1 of the LNG export facility being developed near Corpus Christi, Texas, Cheniere said today in a statement. That’s set to double to 800,000 tons upon the start of Train 2.

Cheniere jumped to a record yesterday after regulators proposed streamlining the approval process for LNG export projects. Cheniere’s Sabine Pass project has won approval from the Federal Energy Regulatory Commission and the Energy Department.

The Corpus Christi Liquefaction Project is being designed and permitted for as many as three trains, with aggregate production capacity of 13.5 million metric tons a year of LNG. Deliveries from Train 2 are expected to start in 2019, Houston-based Cheniere said today in a statement.

“We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015,” Cheniere Chief Executive Officer Charif Souki said in today’s statement.

To contact the editor responsible for this story: Stephen Cunningham at scunningha10@bloomberg.net

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