Corpus Christi and Pertamina Sign Second 20-Year SPA
On Tuesday, Cheniere Energy, Inc. announced in a news release that its subsidiary, Corpus Christi Liquefaction, LLC, entered into a liquefied natural gas (“LNG”) sale and purchase agreement (SPA) with Indonesia state-owned PT Pertamina (Persero) (Pertamina). Under the SPA, Pertamina has agreed to purchase approximately 0.76 million tonnes per annum (mtpa) of LNG upon the commencement of operations of Train 2 of the LNG export facility being developed near Corpus Christi, Texas. 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. The SPA has a term of twenty years, with an extension option of up to ten years. Deliveries from Train 2 are expected to occur in 2019.
This is the second SPA between Corpus Christi and Pertamina, bringing the total quantity of LNG sold to Pertamina under the two agreements to approximately 1.52 mtpa.