A proposed Corpus Christi Liquefaction Plant (LNG Export) is one step closer to becoming a reality.
Cheniere signed a 20-year LNG sale and purchase agreement (SPA) with Pertamina for 0.8 mtpa (90 mmcfd). The deal accounts for just 5% of the plant’s proposed capacity, so more contracts are needed before the $12 billion project will be financed.
Pertamina will pay Henry Hub prices plus an undisclosed fixed component. The 20-year deal starts with the first commercial delivery of LNG and can be extended 10-years.
Cheniere will need many more commitments of this size or a few larger commitments to make the LNG plant a reality.
Pertamina Could Get Gas From Sabine Pass if that Facility Is Expanded
While it is exciting news for the Corpus Christi Liquefaction project, it doesn’t set any thing in stone. If Train 6 (an expansion) of Cheniere’s Sabine Pass LNG export facility is approved and permitted, Pertamina’s contract will void and the company will enter an equivalent agreement at Sabine Pass.