Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE American:
CQP) announced today that its subsidiary Sabine Pass Liquefaction, LLC
(“Sabine Pass Liquefaction”) has entered into a liquefied natural gas
(“LNG”) sale and purchase agreement (“SPA”) with PETRONAS LNG Ltd.
(“PLL”), a subsidiary of the Malaysian state-owned oil and gas company,
PETRONAS. PLL has agreed to purchase approximately 1.1 million tonnes
per annum of LNG from Sabine Pass Liquefaction on a free on board basis
for a term of 20 years following the date of first commercial delivery
for the sixth natural gas liquefaction train (“Train 6”) at the Sabine
Pass liquefaction project (“SPL Project”). The purchase price for LNG is
indexed to the monthly Henry Hub price, plus a fee.
“PETRONAS is one of the largest and most experienced participants in the
global LNG market, and we are pleased to have it as our newest
foundation customer at Sabine Pass, supporting Train 6,” said Jack
Fusco, Chairman, President and CEO of Cheniere Partners. “This 20-year
agreement with Sabine Pass Liquefaction continues our momentum on Train
6, where early engineering, procurement, and site preparation activities
have recently commenced ahead of a final investment decision. We expect
this SPA to support our continued progress toward a final investment
decision in 2019.”
PETRONAS Vice President of LNG Marketing & Trading, Ahmad Adly Alias
said, “PETRONAS is pleased to enter into this long-term relationship
with Cheniere Partners. With the addition of this new volume, it will
enhance PETRONAS’ supply portfolio and further strengthen our position
as a reliable global LNG portfolio player.”
The SPA is subject to certain conditions precedent, including but not
limited to Sabine Pass Liquefaction making a final investment decision
to construct Train 6 of the SPL Project.
About Cheniere Partners
Cheniere Partners, through its subsidiary, Sabine Pass Liquefaction, is
developing, constructing, and operating natural gas liquefaction
facilities at the Sabine Pass LNG terminal located in Cameron Parish,
Louisiana, on the Sabine-Neches Waterway less than four miles from the
Gulf Coast. Cheniere Partners, through Sabine Pass Liquefaction, plans
to construct up to six Trains, which are in various stages of
development, construction, and operations. Trains 1 through 4 are
operational, Train 5 is undergoing commissioning, and Train 6 is being
commercialized and has all necessary regulatory approvals in place. Each
Train is expected to have a nominal production capacity, which is prior
to adjusting for planned maintenance, production reliability, potential
overdesign, and debottlenecking opportunities, of approximately 4.5 mtpa
of LNG and a run rate adjusted nominal production capacity of
approximately 4.5 to 4.9 mtpa of LNG.
Through its wholly owned subsidiary, Sabine Pass LNG, L.P., Cheniere
Partners owns and operates regasification facilities at the Sabine Pass
LNG terminal, which includes pre-existing infrastructure of five LNG
storage tanks with aggregate capacity of approximately 16.9 billion
cubic feet equivalent, two marine berths that can each accommodate
vessels with nominal capacity of up to 266,000 cubic meters and
vaporizers with regasification capacity of approximately 4.0 Bcf/d.
Cheniere Partners also owns a 94-mile pipeline that interconnects the
Sabine Pass LNG terminal with a number of large interstate pipelines
through its wholly owned subsidiary, Cheniere Creole Trail Pipeline, L.P.
For additional information, please refer to the Cheniere Partners
website at www.cheniere.com
and Quarterly Report on Form 10-Q for the quarter ended September 30,
2018, filed with the Securities and Exchange Commission.
Forward-Looking Statements
This press release contains certain statements that may include
“forward-looking statements.” All statements, other than statements of
historical or present facts or conditions, included herein are
“forward-looking statements.” Included among “forward-looking
statements” are, among other things, (i) statements regarding Cheniere
Partners’ financial and operational guidance, business strategy, plans
and objectives, including the development, construction and operation of
liquefaction facilities, (ii) statements regarding expectations
regarding regulatory authorizations and approvals, (iii) statements
expressing beliefs and expectations regarding the development of
Cheniere Partners’ LNG terminal and liquefaction business, (iv)
statements regarding the business operations and prospects of third
parties, (v) statements regarding potential financing arrangements, and
(vi) statements regarding future discussions and entry into contracts.
Although Cheniere Partners believes that the expectations reflected in
these forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may prove
to be incorrect. Cheniere Partners’ actual results could differ
materially from those anticipated in these forward-looking statements as
a result of a variety of factors, including those discussed in Cheniere
Partners’ periodic reports that are filed with and available from the
Securities and Exchange Commission. You should not place undue reliance
on these forward-looking statements, which speak only as of the date of
this press release. Other than as required under the securities laws,
Cheniere Partners does not assume a duty to update these forward-looking
statements.
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