Iberdrola to buy LNG from Cheniere’s Corpus Christi project

Spanish energy firm Iberdrola has agreed to buy around 800,000t of liquefied natural gas (LNG) a year from Cheniere Energy’s Corpus Christi LNG export facility in Texas, US.

Once the project’s Train 1 commences operations, Iberdrola will purchase around 400,000t, increasing to 800,000t once Train 2 starts. The terms of the agreement will extend for 20 years beyond the date of first delivery of Train 2, with an extension option of up to ten years. Deliveries from Train 2 are anticipated to start in 2019.

The project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5 million tonnes of LNG a year. It will feature three LNG storage tanks with capacity of 10.1 billion cubic feet equivalent and two LNG carrier docks.

Cheniere Energy chairman and CEO Charif Souki said that Iberdrola is the first foundation customer on Train 2 of the company’s Corpus Christi Liquefaction project.

"To date we have entered into sale and purchase agreements aggregating approximately 3.8 million tonnes a year of LNG volumes," Souki added.

"We are in advanced discussions with other counterparties and are working towards finalising additional agreements. We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015."

Cheniere is also developing a liquefaction project at the Sabine Pass LNG terminal near the existing regasification facilities for up to six LNG trains. Each train will have a design production capacity of about 4.5 million tonnes a year.