Cheniere moves forward on Texas LNG export project in Corpus Christi

Wednesday, 29 February 2012

Cheniere plans to construct three liquefaction Trains at the Corpus Christi facility to produce around 13.5 million tonnes per annum of LNG.

Cheniere and officials from the Federal Energy Regulatory Commission have just met with community groups to answer questions about the plan to build the plant along the La Quinta Channel on the Texas Gulf coast.

The officials spoke on topics including the project's scope, location, environmental surveys, design and construction under a pre-filing process allowing opportunities for public and stakeholder input.

Cheniere's proposal is for a "bidirectional" facility capable of liquefying and exporting natural gas drilled from the Eagle Ford Shale formation of South and Central Texas and also to regasify LNG when needs arise.

Estimates show the Eagle Ford formation may contain 180 trillion cubic feet of natural gas, giving Cheniere the opportunity to export it to higher-priced markets in Asia or elsewhere rather than into the low-priced US market.

The Corpus Christi facility and associated 24-mile pipeline would be built next an existing alumina plant.

The Houston-based company had initially planned to build an import terminal at the site.

In September 2011, Cheniere formed Corpus Christi Liquefaction to develop an LNG production plant instead.

Cheniere has engaged San Francisco-based Bechtel to complete preliminary front-end engineering and design work for its second LNG plant.

As with the Sabine Pass LNG plant, Cheniere will seek to pre-sell the production from the three Trains at Corpus Christi before making a final investment decision.