8-KOther EventsExhibits & Filings

Cheniere Energy, Inc. 8-K Report, Corporate Update (Dec 13, 2004)

Filed December 13, 2004For Securities:LNG

Summary

Cheniere Energy, Inc. (LNG) filed an 8-K on December 13, 2004, to announce the finalization of a significant 20-year Terminal Use Agreement (TUA) with ChevronTexaco. This agreement, finalized by Cheniere's subsidiary Sabine Pass LNG, L.P., secures 700 million cubic feet per day (mmcf/d) of liquefied natural gas (LNG) receiving capacity for a ChevronTexaco affiliate at Cheniere's developing terminal near Sabine Pass, Louisiana. This is a crucial development for Cheniere as it represents a substantial long-term commitment from a major energy player, validating the company's terminal development project. The agreement also includes flexibility for ChevronTexaco, allowing for potential capacity expansions up to 1.0 billion cubic feet per day (Bcf/d) or reductions to 500 mmcf/d, indicating a strategic, albeit adjustable, partnership.

Key Highlights

  • 1Cheniere Energy finalized a 20-year Terminal Use Agreement (TUA) with ChevronTexaco.
  • 2The agreement grants a ChevronTexaco affiliate 700 mmcf/d of LNG receiving capacity at the Sabine Pass terminal.
  • 3The terminal is being developed by Cheniere's subsidiary, Sabine Pass LNG, L.P.
  • 4The agreement provides ChevronTexaco with the option to increase capacity to 1.0 Bcf/d or decrease it to 500 mmcf/d.
  • 5This deal signifies a major long-term commitment from a key industry player towards Cheniere's LNG infrastructure project.
  • 6The filing also includes the press release and a letter from ChevronTexaco as exhibits.

Frequently Asked Questions

The finalized 20-year Terminal Use Agreement (TUA) with ChevronTexaco is highly significant as it secures substantial long-term capacity at Cheniere's developing LNG receiving terminal near Sabine Pass, Louisiana. This validates Cheniere's project and provides a strong foundation for future development and revenue.

The agreement initially provides a ChevronTexaco affiliate with 700 million cubic feet per day (mmcf/d) of LNG receiving capacity. Importantly, ChevronTexaco has the flexibility to expand this capacity to 1.0 billion cubic feet per day (Bcf/d) or decrease it to 500 mmcf/d.

Sabine Pass LNG, L.P. is a subsidiary of Cheniere Energy, Inc. This subsidiary is responsible for the development and operation of the LNG receiving terminal near Sabine Pass, Louisiana, where the capacity is being provided to ChevronTexaco under the TUA.

The filed exhibits include a press release from Cheniere Energy dated December 13, 2004, detailing the agreement, and a letter received from ChevronTexaco on the same date. These documents provide further context and confirmation of the finalized TUA.