Cheniere Energy, Australia's Woodside Sign LNG Deal

Cheniere Energy on Monday announced it has signed a 20 year deal to sell 0.85 million tonnes per annum (mtpa) of LNG to Australia’s Woodside Petroleum.

Corpus Christi Liquefaction, a subsidiary of Cheniere, will supply the fuel upon commencement of operations of Train 2 of the LNG export facility being developed near Corpus Christi, Texas. Supplies would commence upon the date of first commercial delivery of the second train of the Corpus Christi Liquefaction Project, with an extension option of up to ten years. Deliveries from Train 2 are expected to occur in 2019.

The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5 mtpa of LNG.

As per the deal, Woodside will purchase LNG on a free on board (FOB) basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component.

Perth based Woodside is Australia's largest independent dedicated oil and gas company and one of the world's leading producers of LNG. Woodside operates the North West Shelf Project and Pluto LNG projects with a cumulative capacity of approximately 20.6 mtpa.

Cheniere Energy is a Houston-based energy company primarily engaged in LNG-related businesses, and owns and operates the Sabine Pass LNG terminal and Creole Trail Pipeline in Louisiana. Cheniere has also initiated a project to develop liquefaction facilities near Corpus Christi, Texas.