Cheniere Marketing and Central El Campesino Sign 20-Year LNG Sale and Purchase Agreement
HOUSTON, July 30, 2015 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) through its subsidiary, Cheniere Marketing International LLP ("Cheniere Marketing"), 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 ("mtpa") 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 (SIC). In the December 2014 power auction, Central El Campesino won a bid to sell approximately 480 MW to local distribution companies (LDC's), 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.
Biobiogenera Executive Director Juan José Gana said "this SPA means certainty about the future of electricity supply for consumers, who today experience problems due to the high level of prices that affect them, and which limits the development opportunities of the country."
Cheniere's Executive Vice President of Marketing, Meg Gentle said "We look forward to being a reliable supplier of LNG to Central El Campesino for this important new gas-fired power plant, which will increase the availability of power and have a positive impact on the Chilean electricity market. This transaction is consistent with our strategy of working with customers on gas to power solutions and developing downstream LNG markets."
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 commence 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 fifty-percent partner in the Penco Lirquén LNG Terminal.
About Cheniere Energy, Inc.
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 Trains, each of which is expected to have a nominal production capacity of approximately 4.5 mtpa of LNG. Construction has begun on Trains 1 through 5 of the Sabine Pass Liquefaction Project. Cheniere is also developing liquefaction facilities near Corpus Christi, Texas. The Corpus Christi Liquefaction Project is being designed for up to five Trains, with expected aggregate nominal production capacity of approximately 22.5 mtpa of LNG, four LNG storage tanks with capacity of approximately 13.5 Bcfe and two LNG carrier docks. Construction has begun on the first two Trains of the CCL Project. Cheniere has agreed in principle to partner with Parallax Enterprises, LLC for the development of up to 11 mtpa of LNG production capacity through Parallax's two mid-scale natural gas liquefaction projects, Live Oak LNG and Louisiana LNG. For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, filed with the Securities and Exchange Commission.
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 development, construction and operation of liquefaction facilities, (ii) statements regarding 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.
Released July 30, 2015