uploads/2016/03/Cheniere-Energy-LNG-terminals1.png

An Overview of Cheniere Energy’s Liquefaction Projects

By

Updated

Cheniere Energy’s Sabine Pass Terminal

Cheniere Energy (LNG) and Cheniere Energy Partners (CQP)—its midstream MLP subsidiary—have plans to construct six liquefaction trains at the Sabine Pass Terminal facility. They will each have a production capacity of 4.5 mtpa (million tons per annum). The construction of the first two trains is complete. Trains 3–5 are expected to come online in 2017–2019. Train 6 received approval from the U.S. Department of Energy but the FID (final investment decision) is still pending.

Article continues below advertisement

The Sabine Pass LNG (liquefied natural gas) terminal also includes “existing infrastructure of five LNG storage tanks with capacity of approximately 16.9 billion cubic feet equivalent (Bcfe), two docks that can accommodate vessels with nominal capacity of up to 266,000 cubic meters and vaporizers with regasification capacity of approximately 4.0 Bcf/d.” The terminal is interconnected with several interstate pipelines through Cheniere Energy Partners’ 94-mile Cheniere Creole Trail Pipeline.

Cheniere Energy’s Corpus Christi LNG terminal

Apart from the Sabine Pass Terminal, Cheniere Energy is developing an LNG export terminal at Corpus Christi. In Stage 1 of the project, Cheniere Energy started developing Train 1–2 each with a production capacity of ~4.5 mtpa. In Stage 2, Cheniere Energy plans to construct Train 3. It received the necessary regulatory approval but the FID is pending. In June 2015, Cheniere Energy announced plans to add two additional trains. The complete project is expected to come online in 1Q21. Cheniere Energy accounts for 0.84% of the iShares Global Infrastructure ETF (IGF).

Other players

As of July 31, 2014, the U.S. Department of Energy received ~40 applications to export LNG to non-FTA (free-trade agreement) countries. As of January 6, 2016, the department approved six facilities—five are under construction. The parties that have shown interest in LNG export include Dominion Resources (D), Energy Transfer Equity (ETE), and Kinder Morgan (KMI). Dominion Resources and Energy Transfer received approval. Dominion Resources started construction. The FID is pending on Energy Transfer Equity’s Lake Charles LNG export project. According to Energy Transfer Equity, “We remain on target to reach affirmative FID on the project in 2016 with the construction expected to start immediately thereafter and first LNG exports anticipated in early 2021.”

Advertisement

More From Market Realist