Cheniere Energy Inc. Shares Higher; Signs Export Sales Pact

Cheniere Energy Inc.

opened sharply higher Thursday after it signed a long-term sales agreement with a Portuguese customer that will help underpin financing of its prospective, $12 billion export facility near Corpus Christi, Tex. The Houston-based liquefied natural gas company changed hands recently at $70.60 a share, up nearly 8 percent. Including the sales contract with EDP Energias de Portugal S.A., Cheniere now has agreements to sell 8.43 million tonnes annually from the plant, which is designed for a total annual capacity of 13.5 million tonnes. Cheniere last week hired 18 financial institutions to help structure up to $11.5 billion of debt for the project, which remains subject to regulatory approvals and a final investment decision by Cheniere. Start-up of construction on the plant continues to be expected by early 2015, with production beginning in 2018, according to Cheniere Chief Executive Charif Souki. Cheniere is in talks with other prospective buyers for further purchase agreements, and expects to complete a final investment decision on the project shortly. EDP, Portugal's largest supplier of electricity and second largest supplier of gas, agreed to a price indexed to the monthly Henry Hub price, plus a fixed component that wasn't disclosed. Like several other companies' sales agreements with Cheniere, the EDP contract has a term of 20 years and includes an extension option of up to 10 years.