Corpus Christi LNG Plant One Step Closer To Being Built - Cheniere

Cheniere's Corpus Christi Liquefaction Project

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.

Read more: Cheniere's Corpus Christi Liquefaction Plant Will Cost $12 Billion

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.

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Read the full press release announcing the SPA at

cheniere.com

Cheniere Energy's Port of Corpus Christi LNG Plant Will Cost $12 Billion

Cheniere's Corpus Christi Liquefaction Project

Cheniere Energy is closer to making a decision on final investment in its Corpus Christi Liquefaction project.

Cheniere received a turnkey construction commitment priced at $800/tonne of liquefaction. The engineering and construction company Bechtel submitted the contract in September.

Cheniere has plans for up to six trains with 4.5 mtpa capacity each in Corpus Christi, but initial plans call for three trains with capacity of 13.5 mtpa (~1.8 Bcf/d).

At $800/tonne, the construction costs will be $800 x 13,500,000 tonnes = $10.8 billion. Add financing costs and the price tag will easily reach $12 billion.

Read:Port of Corpus Christi Booms on the Back of Eagle Ford Growth

Construction contracts are negotiated early in the process, but a final investment decision will be made by year-end 2014. The decision will come after commercial export contracts are agreed, all regulatory approvals are received, and financing is in order.

Read the company's full third quarter press release at cheniere.com

Cheniere Energy is based in Houston and is further along in buildinga LNG export terminal at Sabine Pass.

Bechtel is a worldwide engineering, construction, and project management firm based in San Francisco. The company has participated in the development of LNG projects in Australia, Equatorial Guinea, Russia, and Trinidad.