Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Cheniere to build Louisiana Sabine Pass 6 LNG export train

U.S. liquefied natural gas (LNG) company Cheniere Energy Inc said it will build the sixth liquefaction train at its Sabine Pass LNG export terminal in Louisiana.

Sabine Pass LNG
Source: EWA

Cheniere also said it expects to make a positive final investment decision as early as 2020 to add additional capacity in a third stage at its Corpus Christi LNG export terminal in Texas.

Natural gas use is growing rapidly around the world as countries, like China, seek to wean their industrial and power sectors off dirtier coal. Cheniere is the biggest supplier of U.S. LNG and also the biggest buyer of gas in the country.

Cheniere said it gave Bechtel, the lead contractor building its LNG terminals, notice to proceed with construction of Sabine 6. Cheniere has said it has a $2.5 billion contract with Bechtel to build Sabine 6 and expects the unit to enter service in 2023.

To fund a portion of Sabine 6 and a third LNG berth at the plant, Cheniere said its Cheniere Energy Partners LP subsidiary entered into 5-year, $1.5 billion senior secured credit facilities with 29 banks and financial institutions.

Cheniere said it boosted the run-rate production guidance of its liquefaction trains to 4.7–5.0 million tonnes per annum (MTPA) of LNG, up from 4.4-4.9 MTPA. That is equivalent to around 0.7 billion cubic feet per day (bcfd) of natural gas.

One billion cubic feet of gas can supply about five million U.S. homes for a day.

Cheniere said it agreed to buy about 140,000 million British thermal units (mmBtu) of gas from U.S. exploration and production company Apache Corp for about 15 years for the Corpus Christi expansion. That is equivalent to about 0.85 MTPA. The cost of the gas will be indexed to global LNG prices.

Cheniere is developing the third stage at Corpus Christie to include up to seven 0.2-bcfd liquefaction trains. The company said it expects to receive all remaining necessary regulatory approvals for the project by the end of 2019.

Apache said the Cheniere agreement is part of its long-term strategy to access new markets for gas produced at its Alpine High play in the Permian Basin.

The Permian in West Texas and eastern New Mexico is the biggest U.S. shale oil basin. Since much of that oil comes out of the ground with associated gas, it is also the nation’s second-biggest shale gas formation.

Reporting by Scott DiSavino Editing by Paul Simao Editing by Paul Simao

 


Copyright © 2018. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
On the changing landscape of global natural gas trade, the US has magnified its export power by remaining a net exporter for 13 months as of February 2019.
EWAnalysis: US LNG producers eye major growth
- Energy Web Atlas
The US LNG market has experienced rapid growth over the past decade due to the availability of inexpensive feedstock and increased worldwide demand.
Regional Focus: Nigeria moves to expand its liquefaction capacity
-Shem Oirere
The award in July 2018 of long-awaited contracts for the front-end engineering design (FEED) of Nigeria’s Train 7 gas plant expansion project to two consortia is the country’s latest attempt to address the enormous challenges of gas flaring and gas shortages for power plants and domestic consumption.


Reliable Operations & Saving OPEX for Gas Plant Refrigeration – Selecting the right technologies

Register Now

By selecting integrally geared turbocompressors for gas plant refrigeration duty coupled with a mag bearing turboexpander, operators get the added values of technology with highly reliable operations and reduced OPEX. Join Sami Tabaza and Chris Blackmer from Atlas Copco Gas and Process for a presentation followed by Q&A surrounding the turbocompressor and turboexpander technologies that can efficiently and reliably fit your gas plant design and operation to get the advantages of both technologies.

June 18, 2019 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2019 Gulf Publishing Holdings LLC.