Cheniere reaches final investment decision on Trains 3, 4

Cheniere Energy Partners LP, Houston, has reached final investment decision (FID) to construct Trains 3 and 4 of its planned six-train Sabine Pass liquefaction project, the company reported. It has issued a “notice to proceed with construction” to Bechtel Oil, Gas & Chemicals Inc.

Chairman and Chief Executive Officer Charif Souki said, “We have completed all milestones to start construction on the first four liquefaction trains being developed by Sabine Liquefaction.” Each train will have nominal capacity to produce 4.5 million tonnes/year (tpy).

Construction on Trains 1 and 2 began in August 2012 and is, Souki said, about 30% complete. Construction on Trains 3 and 4 will “start immediately.” First LNG is to be delivered by late 2015.

In addition, said Souki, Cheniere expects to apply to the US Federal Energy Regulatory Commission by September for Trains 5 and 6.

Cheniere has also completed buying the Creole Trail pipeline from units of Cheniere Energy Inc. (OGJ Online, Feb. 27. 2012). The 94-mile pipeline will transport US natural gas to the plant for liquefying.

Sabine Pass Liquefaction has also entered into six third-party LNG sale and purchase agreements. The customers include BG Gulf Coast LNG LLC (5.5 million tpy), Gas Natural Aprovisionamientos SDG SA (3.5 million tpy), Korea Gas Corp. (3.5 million tpy), GAIL (India) Ltd. (3.5 million tpy), Total Gas & Power North America Inc. (2 million tpy), and Centrica PLC (1.75 million tpy).

In addition, the company has entered into an SPA with Cheniere Marketing LLC for up to 2 million tpy of LNG that is produced but not already committed to third parties, the company reported.

The BG and Cheniere Marketing SPAs begin with start-up of Train 1, and the Gas Natural Fenosa SPA begins with start-up of Train 2. The Kogas and GAIL SPAs begin with start-up of Trains 3 and 4, respectively, and the Total and Centrica SPAs begin with start-up of Train 5.

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