By OGJ editors
HOUSTON, Jan. 20 -- Exports of LNG from natural gas produced in the US Lower 48 inched closer to reality today with the announcement that Sabine Pass Liquefaction LLC, a subsidiary of Cheniere Energy Partners LP, Houston, had signed a memorandum of understanding with EDF Trading, London.
Under the agreement, EDF Trading intends to contract for 0.7-1.5 million tonnes/year of LNG of processing capacity at Cheniere Partners’ LNG terminal on the Sabine Pass Channel in Cameron Parish, La. Cheniere owns 100% of the terminal, which has sendout capacity of 4 bcfd and storage capacity of 16.9 bcf of gas equivalent.
Under the MOU, EDF Trading, a wholly owned subsidiary of EDF SA, and Sabine Pass agreed to negotiate definitive agreements for EDF Trading to contract bidirectional capacity. The agreement is subject to, among other conditions, receipt by each party of internal approvals, Sabine's receipt of regulatory approvals, and a final investment decision by Sabine Pass to build a liquefaction plant adjacent the import terminal.
The announcement said that, as currently contemplated, the Sabine Pass liquefaction project would be designed and permitted for up to four modular 3.5 million tpy LNG trains. The initial project phase is anticipated to include two trains and the capacity to process about 1.2 bcfd of pipeline-quality natural gas.
EDF stated it intends to enter into contracts for at least 500 MMcfd/train of liquefaction capacity. The announcement said LNG export could begin as early as 2015, assuming Sabine Pass obtains regulatory approvals and makes a final investment decision.