Cheniere Energy Shares Higher, Signs Export Sales Pact
Cheniere Energy, Inc. (NYSE: LNG) opened sharply higher Thursday after it signed a long-term sales agreement with a Portuguese customer that will help underpin financing of its prospective, $12 billion export facility near Corpus Christi, Texas .
The natural gas company changed hands recently at $70.05 , up 6.7 percent.
Including the sales contract with EDP Energias de Portugal S.A. , Cheniere now has agreements to sell 8.43 million tonnes annually from the plant, which is designed for a total annual capacity of 13.5 million tonnes.
Cheniere last week hired 18 financial institutions to help structure up to $11.5 billion of debt for the project, which remains subject to regulatory approvals and a final investment decision by Cheniere.
Start-up of construction on the plant continues to be expected by early 2015, with production beginning in 2018, according to Cheniere Chief Executive Charif Souki .
Cheniere is in talks with other prospective buyers for further purchase agreements, and expects to complete a final investment decision on the project shortly.
EDP, Portugal 's largest supplier of electricity and second largest supplier of gas, agreed to a price indexed to the monthly Henry Hub price, plus a fixed component that wasn't disclosed.
Like several other companies' sales agreements with Cheniere, the EDP contract has a term of 20 years and includes an extension option of up to 10 years.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
