Cheniere Energy Inc., which already is working to install natural gas liquefaction adjacent its Cameron Parrish, La., terminal, has announced its subsidiary Corpus Christi Liquefaction LLC is developing LNG export capabilities at one of Cheniere's existing sites previously permitted for regasification.
The LNG export plant is to be in San Patricio County, Tex., and primarily supplied by reserves from the Eagle Ford shale, about 60 miles northwest of Corpus Christi. The proposed project is being designed for up to three trains capable of producing up to 13.5 million tonnes/year (tpy) total.
Currently, Cheniere is developing a two-train LNG export capacity at its Cameron Parrish Sabine Pass LNG terminal through subsidiary Cheniere Energy Partners LP. The company anticipates the project will include four liquefaction trains capable of producing in aggregate up to 18 million tpy of LNG (OGJ Online, Nov. 16, 2011).
Cheniere recently announced it concluded three long-term LNG sale and purchase agreements for three of the four trains under development and is currently in discussions with parties interested in entering into SPAs for the remaining capacity (OGJ Online, Dec. 12, 2011).
FERC pre-filing review
In connection with the Corpus Christi project, Cheniere initiated the US Federal Energy Regulatory Commission's National Environmental Policy Act pre-filing review for the proposed gas liquefaction plant through Corpus Christi Liquefaction.
The project, said the company’s announcement, would be supported by the large reserves under development in the Eagle Ford, which covers nearly 12,000 sq miles in South Texas and ranks among the largest shale discoveries in the US.
Geologic studies commissioned by Cheniere estimate recoverable oil and gas resources in Eagle Ford at more than 180 tcf equivalent, or 30 billion boe. About 200 rigs currently are drilling in the shale play.
"With our newly proposed project, we will be able to provide up to an additional 13.5 million tpy of liquefaction capacity in the Gulf of Mexico," said Charif Souki, Cheniere chairman and chief executive officer.
The Corpus Christi site consists of about 664 acres, including 212 acres owned, 52 acres under a lease option, and 400 acres of permanent easement. The site is on the La Quinta Channel on the northeast side of Corpus Christi Bay.
The project will be constructed in phases, with each LNG train beginning operations about 6-9 months after the previous train.