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.
Write to Tess Stynes at tess.stynes@wsj.com
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