Cheniere Energy Partners, L.P. (Cheniere Partners) announced that its subsidiary, Sabine Pass Liquefaction, LLC (Sabine Liquefaction), has entered into a liquefied natural gas (LNG) sale and purchase agreement (SPA) with Gas Natural Aprovisionamientos, a subsidiary of Gas Natural Fenosa. Under this agreement, Gas Natural Fenosa has agreed to purchase 3.5mtpa of LNG. Sabine Liquefaction is developing liquefaction capabilities to produce 9.0mtpa of LNG in the first phase of its project at the Sabine Pass LNG terminal owned by Cheniere Partners. This contract with Gas Natural Fenosa marks another milestone for the project as Sabine Liquefaction has now reached its contract capacity target of 7.0mtpa, which is expected to support the construction of the first two trains. As per the agreement, Gas Natural Fenosa will pay Sabine Liquefaction a fixed sales price for the total annual contract quantity and will also pay a contract sales charge for LNG purchases based on the applicable Henry Hub index traded on the New York Mercantile Exchange. LNG will be loaded onto Gas Natural Fenosa’s vessels. The SPA has a term of twenty years beginning on the date of first commercial delivery, and an extension option of up to ten years. LNG deliveries are expected to commence in 2016.
