Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

Commitments and Contingencies
6 Months Ended
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
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):
2021 $ 1,117 
2022 1,861 
2023 1,861 
2024 1,861 
2025 1,861 
Thereafter 35,251 
Total commitment $ 43,812 
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.