Cheniere Energy acquires LNG terminal site at Brownsville, Tex.

Cheniere Energy Inc. said it has a 3-year option with the Port Authority of Brownsville, Tex., for a site where it can build a liquefied natural gas terminal. Under the deal, Cheniere has the right to convert the option into a long-term lease.

July 17, 2001

2 min read

By the OGJ Online Staff

HOUSTON, July 17 -- Cheniere Energy Inc. said Tuesday it has a 3-year option with the Port Authority of Brownsville, Tex., for a site where it can build a liquefied natural gas terminal.

Under the deal, Cheniere has the right to convert the option into a long-term lease.

Cheniere previously announced plans to acquire three sites on the Texas Gulf Coast to develop LNG receiving terminals. It earlier acquired a 3-year option for an LNG terminal site in Freeport, Tex.

Cheniere said that in the next decade, LNG could supply the US market with 15 bcfd or more of gas. Current capacity in existing domestic terminals, including expansion, is less than 5 bcfd.

Charles Reimer, president and CEO of Cheniere, said the Brownsville site could help serve energy needs in Texas and in Mexico.

Cheniere, of Houston, is an independent oil and gas company active in the Gulf of Mexico.

It has begun permitting and engineering work on a Freeport, Tex., site.

Earlier, the company said it would acquire three land lease options to develop LNG terminals along the Texas Gulf Coast (OGJ Online, June 12, 2001).

It said the terminals would cost $300 million each and could process 200 bcf/year. It said permits from the Federal Energy Regulatory Commission as well as state, local, and port authorities and the US Coast Guard would take 2-3 years. Imports could begin in late 2006, the company said.