Summary
Cheniere Energy, Inc. (LNG) announced a material definitive agreement on April 13, 2006, through its wholly-owned subsidiary, Corpus Christi LNG, LLC. The company entered into an Engineering, Procurement, and Construction Services Agreement for Preliminary Work (EPCS Agreement) with La Quinta LNG Partners, LP. This agreement outlines preliminary design, engineering, and site preparation services for Cheniere's proposed liquefied natural gas (LNG) receiving terminal near Corpus Christi, Texas. The EPCS Agreement is a crucial step in the development of the Corpus Christi LNG terminal. The preliminary work is expected to cost no more than $50 million, which will be reimbursed by Corpus Christi LNG to La Quinta. The agreement includes provisions for scope of work, payment terms, warranties, termination rights for both parties, and excusable delay clauses, providing a framework for the initial stages of project development.
Key Highlights
- 1Cheniere Energy subsidiary, Corpus Christi LNG, LLC, entered into an EPCS Agreement with La Quinta LNG Partners, LP on April 13, 2006.
- 2The agreement is for preliminary design, engineering, and site preparation services for a proposed LNG receiving terminal near Corpus Christi, Texas.
- 3La Quinta LNG Partners, LP is a partnership formed by Zachry Construction Corporation and AMEC E&C Services, Inc.
- 4Payments to La Quinta for preliminary work are not expected to exceed $50 million and are on a reimbursable basis.
- 5The EPCS Agreement details the scope of preliminary work, including pipeline dismantlement, road construction, and site preparation.
- 6The agreement includes standard provisions for commencement of work, change orders, payment schedules, warranties, and termination rights for both parties.
- 7La Quinta is liable to correct defective work for 18 months after completion.