CHENIERE ENERGY, INC. |
Delaware | 1-16383 | 95-4352386 | ||||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||
700 Milam Street Suite 800 Houston, Texas | 77002 | |||||
(Address of principal executive offices) | (Zip Code) | |||||
Registrant's telephone number, including area code: (713) 375-5000 |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
• | Commencing on the date of first commercial delivery of LNG from the third liquefaction train (as determined in accordance with the SPA), Sabine Liquefaction will sell and make available for delivery, and KOGAS will take and pay for, cargoes of liquefied natural gas (“LNG”) with an annual contract quantity of 182,500,000 MMBtu (equivalent to approximately 3.5 million tonnes per annum (“mtpa”)). |
• | KOGAS will pay Sabine Liquefaction a contract sales price for each MMBtu of LNG delivered under the SPA. The contract sales price will be equal to $3.00 plus 115% of the final settlement price for the New York Mercantile Exchange Henry Hub natural gas futures contract for the month in which the relevant cargo is scheduled. 11.5% of the fixed portion of the contract sales price will be subject to annual adjustment for inflation. |
• | KOGAS will have the right to suspend delivery of all cargoes of LNG scheduled in a month by a timely advance notice, in which case KOGAS will continue to be obligated to pay the fixed portion of the contract sales price with respect to the quantity of LNG suspended but will forfeit its right to receive the suspended quantity. KOGAS will have the right to resume delivery of cargoes of LNG by a timely advance notice. |
• | The LNG delivery, payment and related provisions of the SPA will have a 20-year term, commencing on the date of first commercial delivery of LNG from the third liquefaction train (as determined in accordance with the SPA). KOGAS will have the right to extend the 20-year term for an additional period of up to 10 years. |
• | The obligations of Sabine Liquefaction to proceed with the liquefaction project under the SPA will become effective when the following conditions have been satisfied or waived: |
◦ | Sabine Liquefaction has received all regulatory approvals required for construction and operation of its third liquefaction train and related facilities in Cameron Parish, Louisiana; |
◦ | Sabine Liquefaction has secured the necessary financing arrangements to construct and operate its third liquefaction train and related facilities; |
◦ | Sabine Liquefaction has taken a positive final investment decision to proceed with construction of its third liquefaction train and related facilities; and |
◦ | specified regulatory authorizations are in effect permitting Sabine Liquefaction to export LNG from the United States. |
• | Sabine Liquefaction will designate the date for the first commercial delivery of LNG from the third liquefaction train within the 180-day period commencing 59 months after the date the preceding conditions have been satisfied or waived. |
Exhibit | ||
Number | Description | |
10.1* | LNG Sale and Purchase Agreement (FOB), dated January 30, 2012, between Sabine Pass Liquefaction, LLC (Seller) and Korea Gas Corporation (Buyer). (Incorporated by reference to Exhibit 10.1 to Cheniere Partners' Current Report on Form 8-K (SEC File No. 1-33366), filed on January 30, 2012) | |
99.1* | Press Release, dated January 30, 2012. (Incorporated by reference to Exhibit 99.1 to Cheniere Partners' Current Report on Form 8-K (SEC File No. 1-33366), filed on January 30, 2012) | |
CHENIERE ENERGY, INC. | ||||||
Date: | January 30, 2012 | By: | /s/ Meg A. Gentle | |||
Name: | Meg A. Gentle | |||||
Title: | Senior Vice President and | |||||
Chief Financial Officer |
Exhibit | ||
Number | Description | |
10.1* | LNG Sale and Purchase Agreement (FOB), dated January 30, 2012, between Sabine Pass Liquefaction, LLC (Seller) and Korea Gas Corporation (Buyer). (Incorporated by reference to Exhibit 10.1 to Cheniere Partners' Current Report on Form 8-K (SEC File No. 1-33366), filed on January 30, 2012) | |
99.1* | Press Release, dated January 30, 2012. (Incorporated by reference to Exhibit 99.1 to Cheniere Partners' Current Report on Form 8-K (SEC File No. 1-33366), filed on January 30, 2012) | |