Cheniere Energy Reaches 20-Year LNG Sales Pact with Endesa

   By Tess Stynes 
 

Cheniere Energy Inc. (LNG) said Spanish energy company Endesa SA (ELEZY, ELE.MC) agreed to purchase about 1.5 million tons a year of liquefied natural gas from the Houston-based company's planned Corpus Christi export operations.

The agreement is for 20 years from the first commercial delivery with an option for an extension of as many as 10 years. Deliveries are expected to start as soon as 2018.

Cheniere Chairman and Chief Executive Charif Souki said the Spanish electric utility and natural-gas provider is the planned export operation's second "foundation customer." The project is being designed with a total production capacity of 13.5 million tons a year.

"We continue to work towards finalizing additional commercial agreements and are nearing completion of the regulatory process, having recently received our scheduling notice from the [Federal Energy Regulatory Commission]," Mr. Souki said. "We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015."

Cheniere Energy is an energy company primarily engaged in liquefied natural gas businesses. It formed and controls Cheniere Energy Partners LP (CQP), which operates the Sabine Pass LNG terminal on the Sabine Pass deep water shipping channel less than four miles from the Gulf Coast.

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