By Tess Stynes
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.
Write to Tess Stynes at Tess.Stynes@dowjones.com
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