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Publish Date : 26-Mar-2013

Centrica plc and Cheniere Energy Partners LP have entered into an agreement to acquire 91,250,000 mmbtu (89 billion cubic feet) of annual liquefied natural gas (LNG) volumes for export from the Sabine Pass liquefaction plant in Louisiana in the US.

This totals nearly 1.75 million metric tonnes per annum (mmtpa), furthermore is the equivalent of the yearly gas demand of nearly 1.8 million UK homes.

The deal has an initial 20 year period, with the option for a 10 year extension, and first commercial delivery is expected in September 2018.

According to the agreement, Centrica will acquire LNG on a \'Free on Board\' basis, providing it destination rights for the cargoes, for a purchase price indexed to the Henry Hub natural gas price in addition to a fixed component.

Centrica will export gas from the fifth LNG train at Sabine Pass, on which initial engineering work has already started.

The deal is subject to several conditions precedent, comprising Cheniere getting the necessary regulatory approvals, securing finance, making a final investment decision and issuing a notice to proceed with the fifth LNG train.

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