Cheniere Marketing was created in 2005 to commercialize Cheniere's network of LNG receiving capacity. Through the Cheniere network, the company can provide a highly reliable and valued service. Cheniere Marketing intends to purchase LNG from international suppliers, arrange the transportation of LNG to Cheniere's network of proposed LNG terminals, utilize its reserved capacity to revaporize LNG, arrange the transportation of revaporized natural gas through affiliate and other interconnected pipelines, and sell natural gas to buyers in the North American market.
Cheniere Marketing has entered into Terminal Use Agreements with Sabine Pass LNG for 2.0 Bcf/d of regasification capacity at the Sabine Pass LNG receiving terminal and with Corpus Christi LNG for 1.0 Bcf/d of regasification capacity at the Corpus Christi LNG receiving terminal. Cheniere Marketing will also be a principle shipper on the proposed pipeline header systems being developed by Cheniere Pipeline Company.
Cheniere's asset network, with its geographically diverse receipt points across the Louisiana and Texas coasts, maximizes our ability to reliably deliver revaporized LNG into the major North American demand centers. Once constructed, Cheniere's LNG Gateway™ will offer three ship channels, six unloading docks, up to 43 Bcf of storage, and 9.9 Bcf/d of regasified LNG sendout.
Although the Cheniere terminals are designed for high reliability with significant component redundancy, certain events, including problems with the channel and weather, may restrict access to a single terminal. The Cheniere network, being comprised of multiple channels with geographic dispersion, can significantly decrease the probability of single event interruptions.
The terminals as a network, located on the U.S. Gulf Coast, will allow us to directly reach pipelines which we estimate serves 75 percent of the North American domestic natural gas market. This will put us in the unique position of being able to receive large quantities of LNG and price it based on the NYMEX Henry Hub contract, instead of regional indices. In addition, the depth of market and liquidity in the U.S. Gulf Coastal states provides insulation from localized pricing volatility which could occur at other less liquid points.
With Cheniere acting as buyer of LNG and seller of natural gas in the domestic arena, we will be able to provide global LNG suppliers with a significant commercial channel to North America. Similarly, we will be able to provide our North American customers with a supply channel into the global gas market. By fostering greater international relationships we are contributing to the health of the North American gas industry which will also benefit the increasingly global gas industry.
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