Cheniere Energy Partners, L.P.
("Cheniere Partners") CQP announced today that its subsidiary,
Sabine Pass Liquefaction, LLC ("Sabine Liquefaction"), has entered into a
liquefied natural gas ("LNG") sale and purchase agreement ("SPA") with Total
Gas & Power North America, Inc. ("Total") under which Total has agreed to
purchase 91,250,000 MMBtu of LNG annually plus 13,500,000 MMBTU of seasonal
LNG volumes upon the commencement of train five operations. These volumes
represent approximately 2.0 million tonnes per annum ("mtpa") of the
approximately 4.5 mtpa of nominal capacity of train five being developed at
Sabine Liquefaction.
Sabine Liquefaction is currently developing five liquefaction trains adjacent
to the Sabine Pass LNG terminal. The first two trains are under construction
and the third and fourth trains are expected to commence construction in
2013. As previously announced, a partial assignment agreement was entered
into between Sabine Liquefaction and Total, allowing Sabine Liquefaction to
gain access to services under Total's terminal use agreement with Sabine Pass
LNG, L.P., including Total's berthing and storage capacity, making further
expansion of the LNG export capabilities at the Sabine Pass LNG terminal
possible.
Under the SPA, Total will purchase LNG on an FOB basis, under which LNG will
be loaded onto Total's vessels, for a purchase price indexed to the monthly
Henry Hub price plus a fixed component. The SPA has a term of twenty years
commencing upon the date of first commercial delivery for train five, and an
extension option of up to ten years. Deliveries from train five are expected
to occur as early as 2018. The SPA is subject to certain conditions
precedent, including but not limited to Sabine Liquefaction receiving
regulatory approvals, securing necessary financing arrangements, making a
final investment decision, and issuing a notice to proceed for train five.
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