Cheniere Energy, Indonesia's Pertamina Sign Additional LNG Deal

Cheniere Energy on Tuesday announced it has signed a 20 year deal to sell 0.76 million tonnes per annum (mtpa) of LNG to Indonesia’s state owned firm Pertamina.

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 current deal is in addition to the previously agreement under which Pertamina will purchase approximately 0.76 mtpa of LNG, bringing the total quantity of LNG sold to Pertamina under the two agreements to approximately 1.52 mtpa, Cheniere said in a statement.

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, Pertamina 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.  

"This SPA represents additional LNG volumes contracted with Pertamina at our Corpus Christi Liquefaction Project. We look forward to supplying LNG to Indonesia as the country transitions to an LNG importer to meet their growing energy needs," said Charif Souki, Chairman and CEO.

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

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