Cheniere Energy Partners said that its subsidiary, Sabine Pass Liquefaction, has entered into a partial assignment agreement and related agreements with Total Gas & Power North America, whereby Sabine Liquefaction would progressively gain access to Total’s send-out capacity and other services provided under its terminal use agreement with Sabine Pass LNG.
These agreements will provide Sabine Liquefaction with additional berthing and storage capacity at the Sabine Pass LNG terminal that may be used to accommodate the development of a fifth liquefaction train, provide increased flexibility in managing LNG cargo loading and unloading activity starting with the commencement of commercial operations of the third liquefaction train, and permit Sabine Liquefaction to more flexibly manage its storage with the commencement of the first liquefaction train.
Under a partial assignment agreement, Sabine Liquefaction will gradually obtain access to Total’s capacity, with access to 38 Bcf per year effective immediately, approximately 195 Bcf per year effective upon commercial operations of the third liquefaction train and substantially all of Total’s capacity upon the start of commercial operations of a potential fifth train. From the commencement of commercial operations of the third liquefaction train, Sabine Liquefaction will pay a monthly fee of $2.5 million to Total and from the commencement of commercial operations of a potential fifth train, Sabine Liquefaction would reimburse Total for all of its payments due to Sabine Pass LNG under the Total TUA. From the commencement of this potential fifth train, Total retains the right to unload LNG at Sabine of up to 195 Bcf per year.
“ These agreements with Total make further expansion of our LNG export capabilities at the Sabine Pass LNG terminal possible as we will have access to additional capacity required to service another liquefaction train, ” said Charif Souki, Chairman and CEO . “ Additionally, these arrangements will enhance our flexibility for managing berthing and storage capacity at the Sabine Pass LNG terminal while allowing Total to retain some of its rights and access to the facility. ”
All agreements are between Sabine Liquefaction and Total and become effective on October 1, 2012. Total will continue to be responsible for all of its payments to Sabine Pass LNG under the Total TUA, and the guarantee of Total’s obligations by its ultimate parent, Total S.A., will remain in place.
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LNG World News Staff, September 12, 2012