Cheniere Energy, Inc. (NYSE MKT:LNG) Q3 2018 Earnings Conference Call Transcript
Nov 08, 2018 • 10:00 am ET
Ladies and gentlemen, good morning and welcome to the Cheniere Energy Third Quarter 2018 Earnings Call and Webcast. Today's conference is being recorded.
At this time, I would like to turn the call over the Randy Bhatia, VP of IR.
Thank you, operator. Good morning and welcome to Cheniere Energy's Third Quarter 2018 Earnings Conference Call. The slide presentation and access to the webcast for today's call are available at cheniere.com. Joining me for today's call are Jack Fusco, Cheniere's President and CEO; and Michael Wortley, EVP and CFO.
(Forward-Looking Cautionary Statements)
In addition, we may include references to non-GAAP financial measures, such as consolidated adjusted EBITDA and distributable cash flow. A reconciliation of these measures to the most comparable GAAP financial measure can be found in the Appendix of the slide presentation. As part of our discussion of Cheniere Energy, Inc.'s results, today's call may also include selected financial information and results for Cheniere Energy Partners LP or CQP. We do not intend to cover CQP's results separately from those of Cheniere Energy, Inc.
The call agenda is shown on slide 3. Jack will begin with an overview of recent commercial and strategic developments, a review or third quarter results and an update on construction and operations at our liquefaction projects. Following Jack's comments, Michael will review our financial results and discuss 2018, 2019 and run rate guidance. After prepared remarks, we will open the call for Q&A.
I'll now turn the call over to Jack Fusco, Cheniere's President and CEO.
Jack A. Fusco
Thank you, Randy and good morning, everyone. Thanks for joining us as we review Cheniere's results from the third quarter 2018, provide updated financial and operating guidance and discuss some important developments we announced in our earnings release earlier this morning. I'm pleased to announce exciting commercial and strategic developments today. This morning, we announced the 24-year SPA with Polish oil and gas company, for approximately 1.45 million tonnes per year of LNG on a delivered basis through our marketing flagship, with delivery of a proportion of that quantity to begin next year.
Anatol is in Poland today celebrating with our newest long-term customer. I want to personally thank Anatol, Ramsey and the entire Cheniere team for another win. Execution of this SPA brings the total amount of contracted volume we have signed this year to over 6 million tonnes, with an average contract tenure of almost 20 years and expected aggregate notional revenue of nearly $50 billion. Our contracting success demonstrates the value buyers place on Cheniere's ability to provide reliable LNG solutions tailored to customer's needs.
This morning Cheniere also signed an EPC contract with Bechtel for the Train 6 expansion at Sabine Pass, locking in cost and construction schedule. We are releasing Bechtel to do some early works to get Train 6 underway prior to our final investment decision. The process of releasing Bechtel under a limited notice to proceed our Corpus Christi Train 3 worked well, and we expect that to be the case for