Summary
This 8-K filing from Cheniere Energy, Inc. (LNG) reports a significant development in its Sabine Pass LNG receiving terminal operations. On December 1, 2005, Chevron USA, Inc. officially elected to increase its reserved capacity at the terminal from approximately 700 million cubic feet per day (MMcf/d) to approximately 1 billion cubic feet per day (Bcf/d). This decision was made in accordance with the Omnibus Agreement previously signed between Sabine Pass LNG, L.P. (a subsidiary of Cheniere) and Chevron.
Key Highlights
- 1Chevron USA, Inc. exercised its option to increase reserved capacity at the Sabine Pass LNG terminal.
- 2The increased capacity is from approximately 700 MMcf/d to approximately 1 Bcf/d.
- 3The election was made on December 1, 2005, as per the terms of the November 8, 2004, Omnibus Agreement.
- 4This development signifies increased commitment and utilization of Cheniere's Sabine Pass facility by a major energy player.
- 5The filing includes the press release announcing the decision and the confirmation letter from Chevron as exhibits.
Frequently Asked Questions
The main event is Chevron USA, Inc. exercising its option to increase its reserved capacity at Cheniere's Sabine Pass LNG receiving terminal from approximately 700 MMcf/d to 1 Bcf/d.
Chevron's decision signifies a greater commitment to utilizing Cheniere's Sabine Pass facility, suggesting increased demand for LNG regasification services and a positive outlook for Cheniere's project development and revenue potential.
Chevron made this election under the terms of the Omnibus Agreement entered into on November 8, 2004, between Sabine Pass LNG, L.P. and Chevron USA, Inc.
The filing includes Exhibit 99.1, which is the press release dated December 1, 2005, announcing the capacity increase, and Exhibit 99.2, a letter from Chevron dated December 1, 2005, confirming its election to increase its reserved capacity.