Cheniere/Centrica Sign 20-Year LNG Sale/Purchase Agreement

May 2013, Vol. 240, No. 5

Cheniere Energy Partners’ subsidiary, Sabine Pass Liquefaction, LLC, has entered into an LNG sale and purchase agreement with Centrica plc under which Centrica will buy 91,250,000 MMBtu of annual LNG volumes upon the start-up of Train 5 operations.

These volumes represent 1.75 million tons per annum (mtpa), which together with the previously announced SPA with Total Gas & Power North America, Inc. brings the total contracted volume to start with Train 5 operations to 3.75 mtpa. Sabine Liquefaction now has commercial contracts for five trains.

Sabine Liquefaction is developing six liquefaction trains, each with expected nominal capacity of 4.5 mtpa, adjacent to the Sabine Pass LNG terminal. Sabine Liquefaction has begun construction of the first two trains and expects to commence construction of the third and fourth trains shortly. The permitting process and preliminary engineering have begun for the fifth and sixth trains.