Cheniere signs MOU for processing at Louisiana terminal

Cheniere Energy Partners LP reported that its unit Sabine Pass Liquefaction LLC has entered into a nonbinding memorandum of understanding with Gas Natural Fenosa for its possible purchase of bidirectional LNG processing capacity of up to 1.5 million tonnes/year at the Sabine Pass LNG terminal in Cameron Parish, La.

By OGJ editors
HOUSTON, Dec. 1
-- Cheniere Energy Partners LP reported that its unit Sabine Pass Liquefaction LLC has entered into a nonbinding memorandum of understanding with Gas Natural Fenosa for its possible purchase of bidirectional LNG processing capacity of up to 1.5 million tonnes/year at the Sabine Pass LNG terminal in Cameron Parish, La.

Under the agreement, Gas Natural Fenosa and Sabine will negotiate agreements for Gas Natural Fenosa to contract capacity. Charif Souki, chairman and chief executive officer of Cheniere Partners, stated that, including this MOU, the company has entered into memoranda for about 4.7 million tpy of LNG processing capacity and “look forward to finalizing discussions with additional customers."

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

The company’s announcement further stated that, as currently contemplated, the Sabine Pass liquefaction project would be designed and permitted for up to four modular LNG trains, each with a peak processing capacity of up to about 700 MMcfd of natural gas and an average liquefaction processing capacity of about 3.5 million tpy.

The company anticipates the initial project phase will include two modular trains and the capacity to process on average about 1.2 bcfd of pipeline-quality natural gas. It intends, it said, to enter into contracts for at least 500 MMcfd/train of liquefaction capacity.

Subject to regulatory approvals and a final investment decision, LNG export could begin as early as 2015, said the company.

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