Cheniere reaches FID for Corpus Christi liquefaction project

Cheniere Energy Inc. has made a final investment decision (FID) for its liquefaction project near Corpus Christi, Tex., and has issued a notice to proceed to Bechtel Oil, Gas & Chemicals Inc. for construction of the first two liquefaction trains (OGJ Online, Jan. 2, 2015).

The news comes on the heels of the US Department of Energy issuing final authorization for the project to export domestically produced LNG to countries without a Free Trade Agreement with the US. The project is authorized to export LNG up to the equivalent of 2.1 bcfd of natural gas for a period of 20 years.

The liquefaction project is designed for as many as three trains with expected aggregate nominal production capacity of 13.5 million tonnes/year, three LNG storage tanks with capacity of 10.1 bcf of gas equivalent, two LNG carrier docks, and a 22-mile, 48-in. gas supply pipeline. The first train is expected to start operations as early as 2018, with the second train expected to start up 6-9 months later.

Total project costs of $11.5 billion for the first two trains, two LNG storage tanks, one dock, and the gas supply pipeline will be funded with $3.1 billion of project equity and $8.4 billion of debt. Corpus Christi Holdings LLC, a wholly owned subsidiary of Cheniere, has closed on its previously reported credit facility for the first two trains totaling $8.4 billion.

“Including our LNG export facility at Sabine Pass, we now have six trains under construction, with first LNG expected at Sabine Pass from Train 1 by yearend,” said Charif Souki, Cheniere chairman and chief executive officer.