LONDON--Integrated energy company Centrica PLC (CNA.LN), said
Monday that it has entered into an agreement with Cheniere Energy
Partners, L.P, to purchase 91,250,000 mmbtu (89 billion cubic feet)
of annual liquefied natural gas (LNG) volumes for export from the
Sabine Pass liquefaction plant in Louisiana in the U.S..
MAIN FACTS:
-This amounts to 1.75 million metric tons per annum or mmtpa
-The contract is for an initial 20 year period, with the option
for a 10 year extension, and the target date for first commercial
delivery is September 2018.
-Under the terms of the agreement, Centrica will purchase LNG on
a 'Free on Board' basis, giving it destination rights for the
cargoes, for a purchase price indexed to the Henry Hub natural gas
price plus a fixed component.
-Centrica will export gas from the fifth LNG train at Sabine
Pass, on which preliminary engineering work has already begun.
-The contract is subject to a number of conditions precedent,
including Cheniere receiving the necessary regulatory approvals,
securing finance, making a final investment decision and issuing a
notice to proceed with the fifth LNG train.
-Centrica PLC shares closed Friday at 358.0 pence, valuing the
company at GBP18.54 billion.
-Write to Razak Musah Baba at razak.baba@dowjones.com
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