Cheniere has entered into a liquefied natural gas (LNG) sale and purchase agreement (SPA) with GAIL (India) under which GAIL has agreed to purchase approximately 3.5 Mt/yr of LNG from train four. Prior to the commencement of train four operations, GAIL will purchase bridge volumes of approximately 0.2 Mt/yr upon the commencement of operations of train two.
Under the SPA, GAIL will purchase LNG on a FOB basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto GAIL's vessels. The SPA has a term of twenty years commencing upon the date of first commercial delivery, and an extension option of up to ten years. Delivery of the bridge volumes are to occur with the commencement of operations of train two, which is expected in 2016 and deliveries from train four are to occur upon commencement of its operations, which is expected as early as 2017.