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Cheniere Energy, Iberdrola sign 20-year, $5.6B LNG supply agreement

  • Cheniere Energy (LNG) +2.7% premarket after agreeing to sell 400K metric tons/year of liquefied natural gas to Spanish power company Iberdrola (IBDRY, IBDSF) upon commencement of operations of Train 1 of the LNG export facility being developed near Corpus Christi, Tex., and increasing to 800K metric tons/year upon commencement of Train 2.
  • The agreement is for 20 years beyond the date of first commercial delivery of the second train, with an extension option of up to 10 years; deliveries from Train 2 are expected to occur in 2019.
  • The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5M metric tons/year of LNG.
  • Iberdrola says the deal is worth $5.6B and will allow it to fulfill its long-term fuel needs for gas generation plants in Spain and Britain, where it is also a major operator.
Comments (2)
  • Michael Bryant
    , contributor
    Comments (5775) | Send Message
     
    "deal is worth $5.6B"

     

    (LNG) market cap = $14.5 billion
    30 May 2014, 09:36 AM Reply Like
  • jolacious
    , contributor
    Comments (96) | Send Message
     
    @MB. What will be the price of LNG EOY 2015? The latest rns indicated, there were additional contracts in advanced negotiations.
    31 May 2014, 05:07 PM Reply Like
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