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Cheniere unit signs 20-year LNG deal with PT Pertamina

Keywords: Tags  Cheniere Energy, liquefied natural gas, LNG, Corpus Christi Liquefaction, PT Pertamina, Charif Souki, supply agreement, Thorsten Schier

NEW YORK — Corpus Christi Liquefaction LLC, a subsidiary of Cheniere Energy Inc., has signed a 20-year liquefied natural gas (LNG) supply agreement with Indonesian state-owned energy provider PT Pertamina.

"Pertamina ... is the first foundation customer for our Corpus Christi liquefaction project being developed in Texas," Charif Souki, president and chief executive officer of Houston-based Cheniere Energy, said in a statement.

Under the terms of the deal, Jakarta-based Pertamina will purchase about 800,000 tonnes of LNG per year at a purchase price indexed to the monthly Henry Hub price plus a fixed component.

The Corpus Christi project is being designed and permitted for up to three liquefaction trains, with expected LNG production capacity of 13.5 million tonnes per year.

"We are nearing completion of the regulatory process and are continuing to work towards finalizing additional commercial agreements. We expect to complete all necessary steps to begin construction on our second LNG export terminal by the second half of 2014," Souki said.

Steel pipe and tube makers in the United States are anticipating increasing demand for their products as a result of the anticipated growth in LNG exports.

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