Corpus Christi facility to supply $5.6 billion in LNG to Spain
A Cheniere Energy subsidiary has agreed to a 20-year deal worth $5.6 billion to supply liquefied natural gas to Spanish power and generation company Iberdola, S.A., the companies announced Friday.When the facility comes on line it should perk up the market for natural gas in the Eagle Ford. It is just the start of the potential trade deals the US can get if it gets into the export market.
Iberdola agreed to purchase 400,000 metric tons annually from Cheniere’s planned Corpus Christi facility once its liquefaction Train 1 comes online. That rate doubles once the facility’s Train 2 come online. The facility is slated to have a total of three trains. Once completed, Iberdrola’s commitment would equal about 6 percent of the facility’s capacity.
Iberdola officials said it would use the natural gas to supply its markets in the UK and Spain.