logo
  Join        Login             Stock Quote

Cheniere Energy (CQP) Signs LNG Agreement With TOTAL (TOT)

 December 17, 2012 09:44 AM
 


(By Balachander) Cheniere Energy Partners LP (NYSEAMEX: CQP) and France-based TOTAL S.A. (NYSE: TOT) have signed a 20-year liquefied natural gas (LNG) agreement for exports of LNG from Sabine Pass terminal in Louisiana.

Under the terms of the agreement, whose financial terms weren't disclosed, Total has agreed to purchase 91,250,000 MMBtu of LNG annually plus 13,500,000 MMBTU of seasonal LNG volumes upon the commencement of train five operations.

"Total, one of our longstanding customers at Sabine Pass, will become the next foundation customer for LNG exports as Sabine Liquefaction further expands its liquefaction project," said Cheniere chief executive Charif Souki.

[Related -Venezuela After Chavez: Regime Change Could Be Positive For Conocophillips, Exxonmobil]

These volumes represent around 2.0 million tonnes per annum (mtpa) of roughly 4.5 mtpa of nominal capacity of train five being developed at Sabine Liquefaction, Cheniere said.

Total will purchase LNG on an FOB basis, under which LNG will be loaded onto Total's vessels, for a purchase price indexed to the monthly Henry Hub price plus a fixed component. 

The agreement has a term of twenty years commencing upon the date of first commercial delivery for train five, and an extension option of up to ten years. 

Cheniere expects deliveries from train five to occur as early as 2018.

[Related -7 Commodity Stocks Yielding Up To 10%]

The Sabine Pass LNG terminal has regasification and send-out capacity of 4.0 billion cubic feet per day (Bcf/d) and storage capacity of 16.9 billion cubic feet equivalent (Bcfe). 

Cheniere Energy shares rose 1.29 percent to trade at $20.48 on Monday. U.S.-listed shares of Total added 0.77 percent to trade at $51.25.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageReversals After a Gap on the Open Could Mean Anything

Yesterday stock indexes gapped up on the open but then reversed course to close sharply lower. This type of read on...

article imageJobless Claims Fall To 15-Year Low

After reading today’s weekly update on jobless claims the Fed’s comment yesterday that “economic activity read on...

article imageGreece, EMU and Democracy

One more post on Greece, possibly not the last read on...

article imageA Tangled Tale Of Rate Hikes & Inflation Expectations

The Federal Reserve continues to signal that it will start raising interest rates later this year, read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.