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.


Lake Charles LNG: Final Investment Decision Taken by Energy Transfer and Shell

Energy Transfer and Shell announced that they had signed a project framework agreement to advance the proposed Lake Charles LNG export terminal and that they plan to issue an invitation to tender for engineering, procurement and contracting companies to start bidding on the project, in a joint statement released on Tuesday morning.

“We are pleased to be moving forward with Shell in progressing this major LNG export project," Lake Charles LNG President Tom Mason, President said in a statement. "We believe the combination of our assets and Shell's LNG experience will create a platform for exporting natural gas from the U.S. Gulf Coast to the global marketplace that is unmatched."

Shell entered into a 50-50 joint venture with Energy Transfer in 2016 to develop a liquefaction plant that can produce up to 16.45 million metric tons of LNG per year. Under the terms of their joint venture, Energy Transfer will own and finance the proposed liquefaction facility while Shell will oversee engineering, design and construction work as well as operate the terminal once it is complete.

"Lake Charles presents a material, competitive liquefaction project with the potential to provide Shell with an operated LNG export position on the U.S. Gulf Coast by the time global supply is expected to tighten in the mid-2020's," Shell Vice President Frederic Phipps said in a statement.

If built, the export terminal project is estimated to create up to 5,000 local jobs during construction and 200 full-time positions when fully operational. Shortly after the shale revolution in 2015 that created a surplus of natural gas in the United States, Energy Transfer got permission from Federal Energy Regulatory Commission to build an export terminal at the site in 2015. The facility site was originally developed as an LNG import terminal in 2006.


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.


Kinder Morgan Delaying Georgia Export Terminal to Fourth Quarter

Kinder Morgan Inc said on Wednesday that their nearly $2 billion Elba liquefied natural gas export terminal in Georgia would have its startup of the first liquefaction unit delayed to the fourth quarter of 2018 instead of the third quarter.

Kinder Morgan also said that they expect the remaining nine units to enter service over a staggered period of time by the third quarter of 2019.

The project would be able to liquefy about 2.5 million tonnes per annum of LNG, which is equal to about 0.35 billion cubic feet per day of natural gas.

In a separate project, Kinder Morgan said it was evaluating if its proposed $2 billion Permian Highway gas pipeline could be turned into a bigger project by using 48-inch pipe instead of 42-inch pipe.

Kinder Morgan said the first phase of the Midland Lateral of its 2-bcfd Gulf Coast Express gas pipeline was expected to enter service on August 1 and the entire $1.75 billion Gulf Coast project to have a scheduled service date of October 2019.



Kinder Morgan Receives FERC Approval for $2 Billion Liquefaction Project

Kinder Morgan reported Thursday that it received approval from the Federal Energy Regulatory Commission (FERC) for its $2 billion Elba Liquefaction Project, which is proposed for construction and operation at the existing Elba Island LNG Terminal near Savannah, Georgia.

The first of 10 liquefaction units will be placed and online by the second quarter of 2018 with the rest of the nine units starting operations by the end of 2018. This project is supported by a 20-year contract between Shell and Kinder Morgan and is expected to produce roughly 350 million cubic feet a day of liquefied natural gas.

Once the final regulatory approvals are granted for the project, construction could begin in as little as 60 days following the approval. Kinder Morgan reported earlier this year that it planned to sell a stake in the project to private equity groups in order to help with the financing of the project. Kinder Morgan’s idea is to cut capital costs during the current oil recession.

Kinder Morgan is headquartered in Houston, Texas and is the largest energy infrastructure in North America, owning interest or operating roughly 84,000 miles of pipeline and owning about 180 terminals.

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