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Cheniere Energy, Inc. 8-K/A Report, Material Agreement (Apr 27, 2007)

Filed April 27, 2007For Securities:LNG

Summary

This filing is an amendment to a previous 8-K report by Cheniere Energy, Inc. (LNG), correcting a minor typographical error regarding the purchase price of LNG cargoes. The primary purpose of the amendment is to clarify that the purchase price for LNG cargoes under the Master Ex-Ship LNG Sales Agreement with Gaz de France (GDF) is 94% of the final NYMEX settlement price per MMBtu, less $0.65 per MMBtu, not $0.70 as originally stated. This agreement, executed on April 26, 2007, involves Cheniere Marketing, Inc. (a subsidiary of Cheniere) and GDF International Trading S.A.S. The core of the filing details a Master Agreement and related option agreements for the purchase and sale of Liquefied Natural Gas (LNG). A specific order under this Master Agreement provides for Cheniere Marketing to purchase up to seven LNG cargoes from GDF between April and October 2008, for delivery to the Sabine Pass regasification terminal. The filing also outlines two option agreements: the GDF Transatlantic Option Agreement, which gives GDF the option to sell LNG to Cheniere Marketing, and the Cheniere Transatlantic Option Agreement, where Cheniere Marketing has the option to sell LNG to GDF. These option agreements are tied to the operational start-up of regasification terminals and have a defined term.

Key Highlights

  • 1Amendment to a previous 8-K filing to correct a pricing error related to LNG cargo purchases.
  • 2Cheniere Marketing, Inc. entered into a Master Ex-Ship LNG Sales Agreement and related option agreements with Gaz de France International Trading S.A.S. on April 26, 2007.
  • 3Cheniere Marketing will purchase up to seven LNG cargoes from GDF between April and October 2008, with delivery to the Sabine Pass regasification terminal.
  • 4The purchase price for these cargoes is 94% of the final NYMEX settlement price per MMBtu, less $0.65 per MMBtu.
  • 5Option agreements allow for monthly transactions of LNG between Cheniere and GDF, subject to specific conditions and terminal start-up dates.
  • 6The GDF Transatlantic Option Agreement grants GDF the option to sell LNG to Cheniere Marketing.
  • 7The Cheniere Transatlantic Option Agreement grants Cheniere Marketing the option to sell LNG to GDF.

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