Cheniere's subsidiary, Corpus Christi Liquefaction, has entered into a liquefied natural gas (LNG) sale and purchase agreement (SPA) with Indonesian oil and gas company Pertamina under which Pertamina has agreed to purchase approximately 0.76 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). The SPA is in addition to the previously announced SPA under which Pertamina will purchase approximately 0.76 Mt/year of LNG, bringing the total quantity of LNG sold to Pertamina under the two agreements to approximately 1.52 Mt/year. The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5 Mt/year of LNG.
Under the SPA, Pertamina will purchase LNG on a free on board (FOB) basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto Pertamina's vessels. The SPA has a term of twenty years commencing upon the date of first commercial delivery of the second train of the Corpus Christi Liquefaction Project, with an extension option of up to ten years. Deliveries from Train 2 are expected to occur in 2019.
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