Iberdola signs up for Corpus Christi LNG

Spanish sale: Cheniere signs Iberdola supply deal

Houston’s Cheniere Energy has signed a 20-year deal to supply Spain’s Iberdola with liquefied natural gas volumes from its proposed Corpus Christi LNG export facility in Texas.

Cheniere Energy chief executive Charif Souki said that Iberdola had become the first foundation customer for the second train of the project.

The Madrid-based power company told Reuters the deal would allow the company to fulfil its long-term fuel needs for gas generation plants in Spain and the UK.

The sale and purchase agreement will see Iberdola receive around 400,000 tonnes per annum of LNG when the first train of the project starts and doubling to 800,000 tpa when the second train comes online.

The 20-year sale and purchase agreement runs from the first delivery from Train 2, expected in 2019, with an option to extend by up to ten years.

The $10.8 billion, three-train export facility has a total design capacity of 13.5 million tpa.

Construction is expected to start next year pending permitting and a final investment decision, with first deliveries scheduled for 2018.

Fellow Spanish power company Endesa and its parent Italy’s Enel signed up for 2.25 mpta altogether from the first train in two recent purchases.

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