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Cheniere inks $5.5 billion deal with British-based company

Last Modified: Thursday, March 28, 2013 10:07 PM

From staff and wire reports

Cheniere Energy Partners inked a $5.5 billion deal with a British-based company to sell and export liquefied natural gas from the Houston-based company’s facility at Sabine Pass in Cameron Parish.

Centrica, based in Windsor, England, has agreed to buy 91.25 million metric British thermal units of LNG. The company supplies electricity and gas in the United Kingdom and United States.

“Centrica is an excellent addition to our customer group, becoming our sixth customer to contract LNG exports at Sabine Pass Liquefaction. Centrica serves over 11 million households in Britain — nearly half of the country’s homes,” Cheniere CEO Charif Souki said in a written statement.

“With this contract, exports from the United States will become an important part of the UK’s overall energy supply portfolio.”

Cheniere and Centrica signed a 20-year agreement, with deliveries to start by 2018. The deal is contingent on Cheniere obtaining government approvals and financing and making the decision to build its LNG export facility, according to company documents.

Cheniere is in the process of building six natural gas liquefaction facilities.

BG Gulf Coast LNG, Gas Natural Aprovisionamientos SDG S.A., Korea Gas Corp., GAIL Ltd., and Total Gas and Power have all agreed to buy natural gas that has been through the process of liquefaction.

“In February 2013 we began the mandatory NEPA (National Environmental Policy Act) pre-filing process with FERC (Federal Energy Regulatory Commission) for trains five and six, and we anticipate filing the full application as early as September of this year,” Souki said.

“In addition, we submitted an application to the DOE (Department of Energy) last month for FTA (free trade agreement) and non-FTA licenses for exports under the TOTAL SPA (sell-purchase agreement). We intend to file the license applications for exports under the Centrica SPA in the upcoming weeks.”

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