EDF and CHENIERE sign TTF-indexed SPA
August 11, 2015
Cheniere Energy (NYSE: LNG) that its wholly owned subsidiary, Cheniere Marketing International LLP (“Cheniere Marketing”) has entered into sales arrangements with Électricité de France, S.A. (“EDF”) for the delivery of liquefied natural gas (“LNG”) cargoes on an ex-ship basis (“DES”) from the Sabine Pass LNG terminal (“Sabine Pass”) to the Dunkerque LNG terminal in France. The sales arrangements cover the delivery of up to 26 cargoes, or up to approximately 100 million MMBtus, through 2018. The sales price for the LNG cargoes is linked to the Dutch Title Transfer index (TTF), a natural gas pricing index in continental Europe.
Volumes will be sourced from Cheniere Marketing’s LNG supply portfolio, which includes rights under a sale and purchase agreement (“SPA”) with Sabine Pass Liquefaction, LLC to purchase any LNG produced from Sabine Pass in excess of that required for other customers. Cheniere Marketing has a similar SPA with Corpus Christi Liquefaction, LLC for LNG produced from Cheniere’s Corpus Christi liquefaction project (“CCL Project”).