Pipelines & Transportation

Cheniere agrees to sell capacity in Sabine Pass LNG terminal to Total unit

Sept. 9, 2004

Total LNG USA Inc. has entered into a terminal use agreement with Sabine Pass LNG LP, a unit of Cheniere Energy Inc., Houston. Total will receive the right to1 bcfd of LNG regasification capacity in the planned 2.6 bcfd Sabine Pass LNG terminal for 20 years beginning Apr. 1, 2009 or earlier.

By OGJ editors

HOUSTON, Sept. 9 -- Total LNG USA Inc. has entered into a terminal use agreement with Sabine Pass LNG LP, a unit of Cheniere Energy Inc., Houston. Total will receive the right to1 bcfd of LNG regasification capacity in the planned 2.6 bcfd Sabine Pass LNG terminal for 20 years beginning Apr. 1, 2009 or earlier.

Total may make initial payment by Nov. 15, followed by a second payment upon Federal Energy Regulatory Commission approval and the completion of construction financing if these occur by June 30, 2005.

Cheniere said it received FERC's draft environmental impact statement Aug. 12 and plans to begin construction in first quarter 2005.