Spanish LNG Grab

摘要

US LNG looks set to make bigger global inroads with Endesa, Spain's largest power utility, signing two offtake deals in as many weeks from Cheniere Energy's proposed Corpus Christi plant on the US Gulf Coast. Worth around $23 billion, the contracts commit Endesa to taking 2.25 million tons/yr for 20 years starting in 2018. The deals are linked to US Henry Hub at a 15% premium plus a fixed price of $3.50/MMBtu. Forecasts are that Henry Hub could hit around S6/MMBtu over the next four years, suggesting a total price of some $9.50 before shipping. Endesa will pay the same as Indonesia's state Pertamina, which signed the first Corpus Christi deal last year, but more than early customers at Cheniere's Sabine Pass. With first-mover advantage at Sabine Pass, the UK's BG will pay 115% of Henry Hub plus a fixed $2.25/MMBtu for 3.5 million tons/yr - $4.5 billion less than Endesa would have paid for the same volume.