Publicly traded energy firm
Cheniere Energy Inc.
) announced that it has signed a second liquefied natural gas
("LNG") sale and purchase agreement (SPA) with Spanish electric
utility firm, Endesa Genercion S.A. The deal involves the sale of
about 0.75 million tons per annum (mtpa) of LNG from Cheniere's
planned Corpus Christi Liquefaction Project.
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The total quantity under agreement now stands at 2.25 mpta,
including the 1.5 mtpa LNG SPA signed earlier this month. This
additional purchase of 0.75 mtpa will be used by Endesa's parent
The Corpus Christi, TX-based LNG export facility is expected to
produce 13.5 mtpa of LNG and has permits for three trains. With
these contracts, Cheniere has secured SPAs for its first LNG
train, and looks toward securing additional contracts for the
facility. Under this SPA, Endesa would buy the produce at a
price indexed to the monthly Henry Hub price, in addition to a
fixed price, on a Free on Board basis.
The company expects to reach a final investment decision and
commence construction of the facility in 2015. First commercial
delivery from the facility under this 20-year agreement is
expected in 2018. The SPA also has a 10-year extension option.
Located in Houston, Texas, Cheniere Energy is mainly involved in
operations related to liquefied natural gas. The company is the
owner and operator of western Cameron Parish, LA-based Sabine
Pass liquefied natural gas terminal. In addition, Cheniere Energy
possesses and operates Louisiana-based Creole Trail Pipeline.
Cheniere Energy holds a Zacks Rank #2 (Buy), indicating that it
will outperform the broader U.S. equity market over the next one
to three months.
In addition to Cheniere, one can consider players from the
industry such as
Range Resources Corp.
World Point Terminals, LP
EOG Resources, Inc.
). While Range Resources and World Point sport a Zacks Rank #1
(Strong Buy), EOG holds a Zacks Rank #2.