Louisiana Sabine Pass 6 LNG Export Train to Be Built by Cheniere

The biggest supplier of U.S. LNG is planning to build a sixth liquefaction train at its Sabine Pass LNG export terminal in Louisiana, Cheniere Energy said on Monday.

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

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

Also all remaining necessary regulatory approvals for the project is expected to receive by the end of 2019, the company said.


Cheniere Energy Gets Approval to Introduce Feed Gas into Train 2

Federal Energy Regulatory Commission gave Cheniere Energy the permission to start introducing feed gas into a production unit known as Train 2 at Corpus Christi LNG exporter terminal, in an order issued on Monday morning.

The startup process for Train 2 began in January. FERC officials already gave permission to Cheniere two weeks ago to begin commercial operations for Train 1 at Corpus Christi LNG.

Cheniere is bringing its second production unit at Corpus Christi LNG at a time of growing exports. U.S. LNG producers exported a record 483 shipments of LNG in 2018, an 84 percent increase from the previous year, figures from the Department of Energy show.


Train 5 of Sabine Pass Liquefaction Project Achieves Substantial Completion

In a statement released by Cheniere Energy Partners, L.P, the company has achieved Substantial Completion of Train 5 of the Sabine Pass liquefaction project in Cameron Parish, Louisiana.

According to the statement, commissioning has been completed and Cheniere Partners’ EPC partner Bechtel Oil, Gas and Chemicals Inc. has turned over care, custody, and control of Train 5 to Cheniere Partners.

Under sale and purchase agreements (SPAs) with Centrica plc and Total Gas & Power North America, Inc., the date of first commercial delivery is expected to occur in August 2019, upon which the term of each of these SPAs commences.

Cheniere Partners and Bechtel have now declared Substantial Completion on five liquefaction trains at the SPL Project ahead of each train’s guaranteed completion date and within project budgets.

Financial results of LNG sales from Train 5 going forward will be reflected in the statement of operations of Cheniere Partners and its applicable affiliates with the achievement of Substantial Completion.


$18 Billion LNG Deal Expected Between Cheniere Energy and China's Sinopec

The Wall Street Journal and S&P Global Platts reported that the Cheniere Energy is close to signing an $18 billion long-term LNG supply deal with China's state-run oil company Sinopec.

The Journal reported that the deal could be announced end of March as part of a broader US-China trade deal at a summit between U.S. President Donald Trump and Chinese President Xi Jinping.

Recently FERC gave Cheniere the green light to put the first production unit at its Corpus Christi LNG unit into service and begin exports.

Cheniere signed two LNG supply deals with PetroChina International Co. a year ago and weeks after Trump’s trade mission to China in November 2017.

The Wall Street Journal also reported that the deal with Sinopec could also include financing from state-owned Chinese banks for Cheniere to further expand its export capacity.


FERC Approves $680M Project: 200-Mile Pipeline Moving NatGas from Oklahoma to Gulf Coast Will Connect to Kinder & Boardwalk Pipe

Cheniere Energy and a Washington D.C. private equity firm have received approval from the Federal Energy Regulatory Commission on Wednesday to build the 200-mile Midship Pipeline. The project will move natural gas from Oklahoma to destinations along the Gulf Coast and southeastern United States in Oklahoma.

In a statement issued by the companies, $680 million in financing was secured for the 36-inch diameter natural gas pipeline and a notice was issued for contractors Strike LLC, M.G. Dyess, TRC Pipeline Services and Cenergy LLC to proceed with construction.

The Midship Pipeline is designed to move 1.4 billion cubic feet of natural gas per day from Oklahoma's SCOOP and STACK shale plays to delivery point just north of the Red River near Bennington, Oklahoma. The project is expected to be placed in service by the end of the year.

The pipeline will connect to Kinder Morgan's Midcontinent Express Pipeline and the Boardwalk Pipeline Partners-owned Gulf Crossing Pipeline, allowing natural gas from Oklahoma to move to the TexOk Hub near Atlanta, Texas and the Perryville Hub near Tallulah, Louisiana.


Cheniere’s Corpus Christi Train 2 Gets Approval to Start Operating

Cheniere’s request to introduce gas and begin operation for the Corpus Christi LNG’s Train 2 fuel gas system has been approved by the FERC.

FERC noted that the approval does not grant Cheniere the authority to introduce hazardous fluids into other facilities at the LNG terminal.

The facility in Corpus Christi consists of three large-scale LNG production units and supporting infrastructure. Seven additional smaller trains have also been proposed.

Train 2 is expected to reach substantial completion in the second half of 2019 with Train 3 to follow in the second half of 2021.

LNG World News

Cheniere Energy To Begin Exporting LNG to Corpus Christi

Cheniere Energy will export its first shipment of liquefied natural gas from Corpus Christi. The company will receive natural gas from the Eagle Ford Shale, Permian Basin and other sources through pipeline, and then liquefy the gas and use tankers to export it to customers in Europe, Latin America and Asia.

Although the first shipment’s destination is not yet clear, the export terminal’s customers will hail from Europe, Asia, and Australia.

The company expects a second processing unit known as Train 2 to be completed during the first quarter of 2019 in Corpus Christi.

Crews with general contractor Bechtel began constructing a third processing unit known as Train 3 during the summer.

Houston Chronicle

Cheniere Energy Requests Permission to Bring Billion Dollar Midship NatGas Pipeline in Oklahoma Into Service

Cheniere Energy Inc asked U.S. energy regulators on Friday for permission to start working on their $1.025 billion Midship natural gas pipeline in Oklahoma.

The company asked the FERC for authorization to start building the proposed 234-mile pipeline in three segments. The project is expected to be complete by early 2019, Cheniere said.

Midship is designed to deliver 1.44 billion cubic feet per day (bcfd) of gas from the Anadarko basin to existing pipelines near Bennington, Oklahoma to transport liquefied natural gas to Gulf Coast and Southeast markets.

Expectation of total U.S. LNG export capacity should rise to 8.3 bcfd by the end of 2019 and 9.6 bcfd by the end of 2020 from 3.8 bcfd now.

Most of the U.S. LNG export terminals are located or being built along the Gulf of Mexico in Louisiana and Texas


Cheniere Oklahoma Midship Natgas Pipe Gets Positive Environmental Report

Cheniere Energy Inc has received a positive environmental report from the U.S. Federal Energy Regulatory Commission (FERC) regarding their proposed $1.025 billion Midship natural gas pipeline in Oklahoma that will stretch 234 miles, have three compressor stations, and a booster station among other facilities.

Cheniere is still reviewing the FERC report and project completion date, although the projected completion date would be early 2019.

With fuel for domestic consumption and liquefied natural gas (LNG) being high in demand, export is growing to areas like the Gulf Coast as well as southeast markets. The Midship project is designed to deliver 1.44 billion cubic feet per day (bpd) of gas from the STACK and SCOOP plays in the Anadarko basin in Oklahoma to existing pipelines near Bennington, Oklahoma. 

LNG export capacity is expected to rise to 3.9 bcfd by year end and 8.7 bcfd by the end of next year, making the United States the third biggest LNG exporter by capacity.

Environmental impacts would be reduced to less-than-significant levels with implementation of the recommended steps that the FERC and Cheniere Energy have in their report.


Cheniere Energy Achieves Regulatory and Financial Goals for Midship Pipeline Project

Proposed map for Midship Project (Cheniere Energy)

Proposed map for Midship Project (Cheniere Energy)

Cheniere Energy announced that it has achieved significant regulatory and financial milestones related to its 200-mile natural gas Midship Project pipeline.

Cheniere filed an application for a Certificate of Public Convenience and Necessity with FERC relating to the Midship Project and hopes to receive authorization in early 2018. It also estimates an in-service date of the pipeline in late 2018 or early 2019.

Cheniere has also entered into agreements with investment funds managed by EIG Global Energy Partners under which EIG has committed to invest up to $500 million in the pipeline project.

The Midship Project is designed to create pipeline capacity of up to 1,440,000 dekatherms per day of transportation to connect production from the STACK and SCOOP resource plays in the Anadarko Basin in Oklahoma to markets in the Gulf Coast and Southeast.

PR Newswire

Cheniere Energy Celebrates 100th Cargo Export of LNG, Marks Milestone in LNG Success

Sabine Pass LNG Terminal along the Sabine Pass River on the border between Texas and Louisiana ( Cheniere Energy )

Sabine Pass LNG Terminal along the Sabine Pass River on the border between Texas and Louisiana (Cheniere Energy)

Cheniere Energy, the current sole exporter of U.S. liquified natural gas, celebrated on Monday its 100th cargo of LNG to leave the company's Sabine Pass export terminal, marking a milestone for the company's success in LNG operations.

In February of 2016, Cheniere became the first company to export LNG from the contiguous U.S. in over 50 years. Other companies are in the process of creating LNG export projects, but none have yet to come online.

"This milestone for Cheniere is a testament to the global demand for American LNG, the hard work and dedication of Cheniere's workforce, and our unique business model that enables customers large and small to access this fuel," said Jack Fusco, Cheniere's President and CEO.

Cheniere is also currently building another LNG project near Corpus Christi, which should begin operations in 2019.

Cheniere Energy
Fuel Fix