The agreement will provide Endesa with 1.5 million tonnes per year from Cheniere's export facility under development near Corpus Christi, Texas, which is expected to have a total capacity of 13.5 million tonnes annually. The first delivery of LNG from Corpus Christi to the Spanish multinational firm -- which is also Latin America's largest private electric utility -- is expected to begin in 2018.
"Endesa is the second foundation customer for our Corpus Christi Liquefaction Project being developed in Texas," noted the chairman and CEO of Cheniere Energy, Charif Souki, in the press release announcing the agreement. "We continue to work toward finalizing additional commercial agreements and are nearing completion of the regulatory process, having recently received our scheduling notice from the FERC. We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015."
In December, Cheniere Energy came to terms with Indonesian state-owned firm PT Pertamina to supply it with up to 800,000 tonnes per year of LNG. This was the first agreement announced involving the operations of the Corpus Christi Liquefaction project by Cheniere.
Under the terms of the agreements, the two firms will purchase liquid natural gas based on a price tied to the monthly Henry Hub and a fixed component. The agreements will last 20 years beginning on the date of the first commercial delivery and will have an option to be extended for 10 additional years.