Cheniere Energy, Inc. announced that its subsidiary, Corpus Christi Liquefaction, LLC (Corpus Christi Liquefaction), has entered into a liquefied natural gas (LNG) sale and purchase agreement (SPA) with Iberdrola, S.A. (Iberdrola) under which Iberdrola has agreed to purchase approximately 0.4 million tonnes per annum (mtpa) of LNG upon the commencement of operations of Train 1 of the LNG export facility being developed near Corpus Christi, Texas (the "Corpus Christi Liquefaction Project"), and increasing to approximately 0.8 mtpa of LNG upon the commencement of operations of Train 2. The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5 mtpa of LNG.
Under the SPA, Iberdrola 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. LNG will be loaded onto Iberdrola's vessels. The term of the SPA will extend for twenty years beyond the date of first commercial delivery of the second train of the Corpus Christi Liquefaction Project, with an extension option of up to ten years. Deliveries from Train 2 are expected to occur in 2019.