Centrica signs long-term North American LNG export contract with Cheniere
Centrica has an agreement with Cheniere Energy Partners to purchase 89 billion cubic feet of annual liquefied natural gas (LNG) volumes for export from Chenieres Sabine Pass liquefaction plant in Louisiana. This amounts to approximately 1.75 MM metric tpy, and is the equivalent of the annual gas demand of around 1.8 MM UK homes. The contract is for an initial 20-year period, with the option for a 10-year extension, and the target date for first commercial delivery is September 2018. Under the terms of the agreement, Centrica will purchase LNG on a free on board (FOB) basis, giving it destination rights for the cargoes, for a purchase price indexed to the Henry Hub natural gas price plus a fixed component. Centrica will export gas from the fifth LNG train at Sabine Pass, on which preliminary engineering work has already begun.