Cheniere’s Corpus Christi Train-2 starts production

Wednesday, 03 July 2019
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Cheniere Energy has produced first LNG at the second liquefaction Train at the Corpus Christi export plant in Texas. Completion was achieved ahead of schedule, the operator said, but gave no details of when the first cargo would be shipped.

Train-2 is currently being ramped up to produce its nameplate capacity of 4.5 million tonnes per annum, amounting to a total output of 13.5 mtpa when all three Trains in the Phase-1 development are on stream.

Houston-based Cheniere also owns and operates five Trains at Sabine Pass liquefaction and export plant in Louisiana. At the same time, the U.S. LNG frontrunner also plans seven mid-scale liquefaction Trains adjacent to the Corpus Christi project, each with an expected nominal LNG production capacity of around 1.4 mtpa.

Combined, the seven midscale Trains would have 9.5 mtpa nominal production capacity and add to the current development of three large 13.5 mtpa Trains, with Train 1 and 2 already completed. Once completed, the total production capacity of Texas LNG is planned to reach 23 mtpa.

In early June, Cheniere’s Corpus Christi Liquefaction Stage III subsidiary signed an agreement with company Apache Corp. for 140,000 million British thermal units per day (mmBtu/d) of natural gas for around 15 years. The expected LNG output associated with this gas supply, approximately 0.85 mtpa, underpins Cheniere's expansion plans at the Texan plant.

This long-term feed-gas supply will Apache will sources the gas from the Permian Basin, a prolific shale rock formation in West Texas and southeast New Mexico. John J. Christmann, Apache’s CEO and President said the deal was part of the company’s long-term strategy to leverage the scale of its Permian assets and diversify its customer base and cost structure.

Permian gas underpins Corpus Christi Stage III

Under the deal, Apache will receive an LNG price – net of a fixed liquefaction fee and certain costs incurred by Cheniere – for the feed gas volumes delivered to Corpus Christi Stage III. The actual LNG price will be determined based on international indices.

Jack Fusco, Cheniere’s President and CEO said this first-of-its-kind long-term agreement with Apache “will ensure the continued reliable delivery of natural gas to Cheniere from one of the premier producers in the Permian Basin, while enabling Apache to access global LNG pricing and receive flow assurance for its gas.” 

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