Summary
Cheniere Energy, Inc. (LNG) filed an 8-K report on March 15, 2007, detailing a material definitive agreement. The filing announces that on March 12, 2007, Cheniere Creole Trail Pipeline, L.P. (CCTP), a wholly-owned subsidiary, entered into a Construction Agreement with Sunland Construction, Inc. for the construction of Segment 1 of the Creole Trail pipeline system. This segment, approximately 18.4 miles long and 42 inches in diameter, will be built in Cameron Parish, Louisiana. The agreement outlines the scope of work, scheduling, payment terms, and credit support. The estimated contract price for this segment is approximately $43.6 million. Cheniere Energy, Inc. will provide credit support up to $12 million for CCTP's obligations. The filing also details warranty provisions, termination rights for both default and convenience, and force majeure clauses, including specific provisions for delays caused by named tropical storms or hurricanes.
Key Highlights
- 1Cheniere subsidiary CCTP entered into a Construction Agreement with Sunland Construction for Segment 1 of the Creole Trail pipeline.
- 2The agreement covers the construction of an approximately 18.4-mile, 42-inch pipeline segment in Cameron Parish, Louisiana.
- 3The estimated contract price for this segment is approximately $43.6 million.
- 4Sunland is required to achieve mechanical completion by March 15, 2008, with subsequent substantial and final completion deadlines.
- 5Cheniere Energy, Inc. is providing credit support up to $12 million for CCTP's obligations under the agreement.
- 6The agreement includes detailed provisions for warranties, termination rights (for cause and convenience), and force majeure events, with specific considerations for hurricanes.