Cheniere Energy has entered into an LNG sale and purchase agreement (SPA) with EDF under which EDF has agreed to purchase approximately 0.38 Mt/year of LNG upon the commencement of operations of Train 2 of the LNG export facility being developed near Corpus Christi, Texas (United States), and increasing to approximately 0.77 Mt/year of LNG upon the commencement of operations of Train 3. The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains of 4.5 Mt/year each, with aggregate design production capacity of 13.5 Mt/year of LNG.
Under the SPA, EDF will purchase LNG on a free on board basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto EDF's vessels. The term of the SPA will extend for twenty years beyond the date of first commercial delivery of the third train of the Corpus Christi Liquefaction Project, with an extension option of up to ten years. Deliveries from Train 3 are expected to occur as early as 2019. 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 Train 3 of the Corpus Christi Liquefaction Project.
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