Cheniere unit signs another LNG export agreement

By OGJ editors
HOUSTON, Jan. 28 -- Cheniere Energy Partners LP’s subsidiary Sabine Pass Liquefaction LLC has concluded a nonbinding memorandum of understanding with Sumitomo Corp. under which Sumitomo intends to contract for up to about 1.5 million tonnes/year of processing capacity at the Sabine Pass LNG terminal in Cameron Parish, La.

Under the MOU, Sumitomo and Sabine agreed to negotiate definitive agreements for Sumitomo to contract bidirectional capacity. The final agreements would be subject to, among other conditions, receipt by each party of internal approvals, Sabine Pass's receipt of regulatory approvals, and a final investment decision by Sabine Pass to construct the liquefaction.

Charif Souki, chairman and chief executive officer of Cheniere Energy Partners, said, “With this MOU we have up to 7.7 million tpy of LNG processing capacity reserved. We have reached our targeted capacity for the first two trains and look forward to advancing discussions and entering into definitive agreements.”

Cheniere Partners owns 100% of the Sabine Pass LNG terminal, which has sendout capacity of 4 bcfd and storage capacity of 16.9 bcf of gas equivalent.

As currently contemplated, said the company’s announcement, Sabine Pass liquefaction would be designed and permitted for up to four modular LNG trains, each with peak processing capacity of up to about 7 MMcfd of natural gas and average liquefaction processing capacity of about 3.5 million tpy.

The initial project phase will include two modular trains and capacity to process about 1.2 bcfd of pipeline-quality gas. Cheniere said it intends to conclude contracts for at least 5 MMcfd/train of liquefaction capacity. With regulatory and company approvals, LNG export could commence as early as 2015, said the announcement.