LNG

Entergy Texas, one of the main power companies at the centre of the LNG export sector on the US Gulf Coast, has filed an application with the Public Utility Commission of Texas (PUCT) for approval to construct two natural gas-fired power plants to build up electric resiliency in the state.

Cheniere Energy, the operator of the Sabine Pass LNG export plant in Louisiana and Corpus Christi LNG in Texas, swung to a third-quarter profit of $1.7 billion compared with losses of $2.38Bln in the prior-year quarter as 152 cargoes were shipped in the three months and 468 cargoes in the first ninth months of the year.

Cheniere Energy has signed a long-term liquefied natural gas sale and purchase agreement with the South Korean utility company, Korea Southern Power (KOSPO) for the Sabine Pass expansion project.

The US Department of Energy has issued two long-term orders authorizing more liquefied natural gas shipments from the existing liquefaction and export facilities owned by Cheniere Energy at Sabine Pass in Louisiana and Corpus Christi in Texas.

The two DoE orders allow Sabine Pass and Corpus Christi more feed gas to liquefy and export. Sabine Pass started operations in February 2016.

The Cheniere plants can now have the additional flexibility to export the equivalent of 0.72 billion cubic feet per day of natural gas as LNG to any country with which the US does not have a free trade agreement, including all of Europe.

When US LNG export plants were being developed for the first time in the lower 48 states the DoE was tasked with making sure there were export limits that protected US domestic natural gas needs as well.

“While US exporters are already exporting at or near their maximum capacity, with the issuances, every operating US LNG export project has approval from DoE to export its full capacity to any country where not prohibited by US law or policy,” said the DoE.

Top exporter

The statement noted that the US was now the top global exporter of LNG and exports are set to grow an additional 20 percent beyond current levels by the end of 2022 as additional capacity comes on stream.

In January 2022, the US supplied more than half of the LNG import needs of Europe.

“With the expected rise in LNG exports, the DoE is particularly focused on driving down methane emissions in the oil and gas sector both domestically and abroad,” added the statement.

It declared that US LNG remained an important component in global energy security.

“The DoE remains committed to finding ways to help our allies and trading partners with the energy supplies they need,” said the statement.

Cheniere announced in early February 2022 the completion of Train 6 at Sabine Pass in Cameron Parish in Louisiana, formally taking nameplate capacity to 27 million tonnes per annum.

The Corpus Christy facility has nameplate capacity of 13.5 MTPA from three Trains.

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

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

The expansion will add up to seven mid-scale Trains, each with an expected liquefaction capacity of around 1.49 MTPA with a total production capacity of more than 10 MTPA.

Cheniere Energy, the largest US LNG exporter from the Sabine Pas plant in Louisiana and Corpus Christi in Texas, reported annual revenues up by 70 percent to $15.86 billion, though posted a net loss from changes to the fair value of derivatives and from previous cancelled cargoes.

Cheniere Energy, the largest US liquefied natural gas exporter from plants at Sabine Pass in Louisiana and Corpus Christi in Texas, has signed a sale and purchase agreement with ENN Group, the leading non-state energy company in China with LNG and growing city-gas assets.

The ENN LNG marketing unit based in Singapore will purchases 900,000 tonnes per annum of LNG from Cheniere Marketing on a free-on-board basis for a term of 13 years beginning in July 2022.

The purchase price for the LNG is indexed to the US benchmark Henry Hub price, plus a fixed liquefaction fee.

Acting as guarantor of the agreement will be the natural gas units in the ENN Group, which owns the Zhoushan LNG import terminal in the Zhejiang Free Trade Zone in eastern China.

“We are pleased to announce this long-term LNG contract with ENN, a major player in China’s rapidly growing natural gas market, and we look forward to a successful, long-term relationship with ENN as a customer,” said Jack Fusco, Cheniere’s President and Chief Executive.

“This SPA underscores the strength of the global LNG market, particularly in China, and highlights Cheniere’s role as a leading global supplier,’ added Fusco.

The CEO noted that the deal further advanced Cheniere’s commercial momentum in anticipation of the final investment decision expected in 2022 on expanding the Corpus Christi facility.

Wang Yusuo, Chairman of ENN Natural Gas, was embarked on the cleaner energy path with industry reforms and structural adjustment of energy consumption.

“It is expected that the two parties will seize the opportunity of this cooperation to establish a strategic relationship, to provide clients with high quality resources and services,” said Wang.

ENN, whose shares are listed in Hong Kong, said in its latest earnings that first-half revenues had increased 30 percent to the equivalent of US$6.38Bln.

ENN now has a total of 239 city-gas franchises in 20 different regions and provinces in areas such as in Beijing, Fujian, Guangdong, Shanghai and Tianjin, with a connectable population of 117 million.

Since the start of 2021, ENN has acquired more exclusive operating rights in four more city-gas projects, the Ruyang Industrial area in Henan province, Lvsigang Town in Jiangsu province, the Lantang industrial new town in Guangdong province and the industrial area of Chizhou in Anhui province.

Cheniere Energy, the leading US LNG export company through its Sabine Pass plant in Louisiana and the Corpus Christi facility in Texas, has ridden through the current storms and reported strong results.