Commitments and Contingencies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies |
NOTE 10 — COMMITMENTS AND CONTINGENCIES
Port Lease
On June 29, 2021, we exercised our lease option and entered into a non-cancellable lease for a tract of land that will be utilized for the construction of the Driftwood terminal. This non-cancellable lease became effective on July 1, 2021, and has an initial contractual term of 20 years. We have the ability, at our sole discretion, to exercise options and extend the lease for an additional 30 years.
As of June 30, 2021, our annual commitments in connection with the non-cancellable portion of this lease are as follows (in thousands):
LNG Purchases
On April 23, 2019, we entered into a master LNG SPA and related confirmation notices with an unrelated third-party LNG merchant. Pursuant to this SPA, we committed to purchase one cargo of LNG per quarter through October 2022. The volume of each cargo is expected to range from 3.3 to 3.6 million MMBtu, and each cargo will be purchased under DES terms. The price of each cargo will be based on the JKM price in effect at the time of each purchase.
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