Cheniere Energy Partners LP (CQP) reached an 20-year deal under which
Total SA (TOT, FP.FR), the France-based energy major, has agreed to purchase
nearly half the volume of a fifth train planned for Cheniere's liquefied
natural-gas export facility that is being developed in Louisiana.
Cheniere Energy Partners shares were up 3.2% at $20.87 in recent premarket
trading.
The pact--along with additional indications of interest--allows Cheniere to
move ahead with the development of the fifth train. The company's LNG-export
project at its
Sabine
Pass
operation initially was designed and permitted for as many as four modular LNG
trains. A sixth train also is being considered.
Cheniere Energy Partners, a limited partnership formed and controlled by
Cheniere Energy Inc. (LNG), is developing a major LNG export plant in
Louisiana
,
aiming to take advantage of a glut of natural gas in the
U.S.
and
higher prices that the commodity can demand abroad.
Total's
U.S.
unit
is planning to purchase about two million tons a year of the train's annual
capacity of about 4.5 million tons. The first two trains are under construction
and work on the second two trains is expected to start next year.
Total and Cheniere previously has reached a partial accord allowing the
Cheniere facility access to services under Total's terminal use agreement with
the Sabine Pass operation, making further expansion of LNG export capabilities
possible.
The accord begins with the date of train five's first commercial
delivery--expected as early as 2018-- and has an extension option of as much as
10 years.
Total's
American depositary shares rose 35 cents to $51.21 premarket.