LNG

Cheniere Energy, the largest US LNG exporter from its Sabine Pass plant in Louisiana and the Corpus Christi facility in Texas, has agreed to extend an LNG sales accord  with the French utility Engie.

Cheniere said it has agreed with Engie, based in Paris, to amend the LNG sale and purchase agreement (SPA) the parties previously entered into in June 2021.

The Houston, Texas-based company said that under the revised SPA, Engie had agreed to purchase approximately 900,000 tonnes per annum of LNG from Corpus Christi on a free-on-board basis for 20 years and whereby the French provide their own ships.

The FOB contract began in September 2021. Cheniere said the purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee.

Engie had previously agreed in June 2021 to purchase between 400,000 tonnes per annum and 1.1 million tonnes per annum of LNG for 11 years.

“We are pleased to build upon the long-term agreement we signed in 2021 with Engie, one of Europe’s energy leaders in low-carbon solutions, to increase the volume and extend the term beyond 2040,” said Jack Fusco, Cheniere’s President and Chief Executive .

“This SPA reflects the importance of a diverse and reliable long-term supply of natural gas for Europe and reinforces the value the LNG market places in Cheniere’s commitment to climate and sustainability initiatives,” added Fusco.

Flexible

“We look forward to continuing to supply Engie with flexible, cleaner burning LNG as part of our shared vision of a lower carbon future,” stated the CEO.

Cheniere is now moving forward with the lump sum, turnkey, engineering, procurement and construction contract with US LNG and energy engineering firm Bechtel Inc. for the Corpus Christi LNG plant expansion.

Cheniere has asked Bechtel to commence early engineering, procurement and other site work for the Corpus Christi expansion, known by Cheniere as the Stage III Project.

Corpus Christi Stage III is a fully permitted project consisting of up to seven mid-scale Trains, each with an expected liquefaction capacity of about 1.49 MTPA with a total production capacity of more than 10 MTPA.

Cheniere said that it was pleased to once again partner with Bechtel following the engineering firm’s “unmatched track record for execution excellence” while successfully building Cheniere’s LNG platform.

Cheniere in February 2022 announced the completion of Train 6 at Sabine Pass plant Cameron Parish in Louisiana, formally taking nameplate capacity to 27 MTPA. 

Cheniere Energy said it had initiated a planned lump sum, turnkey, engineering, procurement and construction contract with US LNG and energy engineering firm Bechtel Inc. for the Corpus Christi LNG plant expansion.

A Greek-owned carrier departed the Calcasieu Pass LNG plant in Louisiana with the inaugural first cargo and headed for Japan as America’s seventh and newest large-scale export facility opened for business to meet growing demand for natural gas around the world.

The United States Government expects high levels of US LNG exports to continue into 2022, averaging 11.3 billion cubic feet per day for the year, a 16 percent increase from 2021 as new production comes on stream.

Cheniere Energy has announced the “substantial completion” of Train 6 at the Sabine Pass liquefaction plant in Cameron Parish in Louisiana and formally taking nameplate capacity to 27 million tonnes per annum.

“Commissioning is complete and Cheniere’s engineering, procurement and construction partner, Bechtel Oil, Gas and Chemicals has turned over care, custody and control of Train 6 to Cheniere Energy Partners LP,” said a statement from the Houston, Texas-based company.

“With the achievement of substantial completion, financial results of LNG sales from Train 6 going forward will be reflected in the statement of operations of Cheniere Partners and its applicable affiliates,” added the company.

The work on Cheniere’s Sabine Pass Train 6 started in June 2019 and the peak workforce on the project reached 1,800 workers who installed 12,250 tons of steel, poured 48,500 yards of concrete and laid 2,500,000 feet of cable.

“The accelerated completion of Train 6 once again reflects the world-class standard of execution consistently achieved by the Cheniere and Bechtel teams, and we are proud to have the six-Train vision of Sabine Pass completed safely, ahead of schedule and on budget,” said Jack Fusco, Chairman, President and Chief Executive of Cheniere Partners.

Nine Trains

“With nine total Trains across both the Sabine Pass and Corpus Christi projects, the Cheniere liquefaction platform is the second largest in the world, reliably providing our global customer base with clean, secure and affordable energy,” explained Fusco.

“We look forward to opportunities to build upon our platform with disciplined, brownfield growth at both sites in the future,” stated the CEO.

Brendan Bechtel, Chairman and CEO of Bechtel, said Cheniere plays a vital role in delivering reliable and safe energy to communities around the world.

“For us to be involved in supporting the development of these extraordinary projects is a great source of pride and we’re honored to help bring Cheniere’s vision to reality,” declared the Bechtel Chairman.

Cheniere Partners also owns the Creole Trail Pipeline, which interconnects the Sabine Pass LNG terminal with a number of large interstate pipelines.

Cheniere can now turn its focus to the Texas Corpus Christi plant expansion, known as Stage 3 and comprising the construction of seven mid-scale liquefaction Trains adjacent to the existing facility.

The mid-scale Trains will add nameplate capacity of almost 10 MTPA to the 13.5 MTPA from the three larger existing Corpus Christi Trains, each producing 4.5 MTPA.

Cheniere is aiming to reach a final investment decision on the Texas plant expansion project in 2022.

Cheniere Energy has requested more time from the Federal Energy Regulatory Commission to build and bring into commercial service the planned expansion project at the Corpus Christi LNG export plant on the Gulf Coast of Texas.

Cheniere Energy's sixth liquefied natural gas processing Train at the Sabine Pass plant in Louisiana has produced first LNG volumes and full commissioning will take nameplate capacity to 27 million tonnes per annum and actual capacity to 30 MTPA and the US closer to being the World No. 1 LNG exporter.

Cheniere Energy, the operator of the US Sabine Pass and Corpus Christi LNG export plants, reported soaring revenues that more than doubled to $3.20 billion for the third quarter as natural gas market prices hit records worldwide.

Cheniere Energy, the largest US LNG exporter from its Sabine Pass plant in Louisiana and Corpus Christi facility in Texas, has approved a comprehensive, long-term capital allocation plan to achieve an investment-grade balance sheet, return significant capital to shareholders over time and continue to invest in growth.

Kinder Morgan Inc., the US pipeline and terminals company and whose earnings measure the wellbeing of the US and oil and gas industry and the growing LNG sector, posted a wider net loss in the second quarter versus the same period of 2020 because of South Texas natural gas issues.