Boston, MA 06/02/2014 (wallstreetpr) – The leading energy resource producer and marketer Cheniere Energy, Inc. (NYSEMKT:LNG) recently entered into a contract with another energy sector giant Iberdrola. The details of this agreement are as follows-
LNG vs Iberdrola:
LNG is a leading company in the energy sector which is known for offering second to none products and services. Recently it agreed to enter into a contract with Iberdrola. One of the subsidiaries of LNG named Corpus Christi Liquefaction has entered into a 20 year sale and purchase agreement with Iberdrola. According to the liquefied natural gas agreement, Iberdrola will buy 0.4 million tons of LNG per annum if the operations in Train 1 of LNG export facility in the area of Corpus Christi get started. It will further increase the figure to 0.8 mtpa if operations of train 2 get started. Please note that Corpus Christi area in Texas has permission to start maximum 3 trains with a capacity of 13.5 mtpa of LNG per annum.
Please note that Iberdrola will purchase LNG on FOB basis. FOB here refers to free on board basis. The liquid natural gas will be unloaded in the vassals of Iberdrola. A duration of 20 years will start from the first delivery of the second train and can be further extended up to 10 years. The way things are moving, one can expect first delivery of train 2 in the year 2019.
The Chairman and CEO Charif Souki of Cheniere Energy, Inc. (NYSEMKT:LNG) said,” Iberdrola is the first supplier of train 2 of our Corpus Christi project. It has operations spread in various parts of the world. We expect that our association with Iberdrola will be a fruitful one.” The sale and purchase agreement between both the energy sector giants will surely bring a lot of positives for them. Please note that the commencement of operations at Corpus Christi branch is subjected to regulatory approvals and availability of funds to start Train 2 project.
