Cheniere to Consider 2 Additional Trains at Sabine Pass

Cheniere Energy will consider adding two more trains to the Sabine Pass liquefied natural gas (LNG) facility now that the company has completed commercial contracts for four trains at the terminal, a company spokesperson confirmed to Rigzone on Tuesday.

Media reports earlier this week quoted the company's chairman and CEO Charif Souki as saying the company would seek to expand the facility's export capacity.

The company reported Monday that its subsidiary Sabine Pass Liquefaction had entered a sale and purchase (SPA) agreement with Korea Gas Corporation (KOGAS), through which KOGAS would purchase approximately 3.5 million tones per annum (mtpa) of LNG. The purchase would take place when Sabine Pass' third train begins operations.

On Jan. 26, Cheniere reported it had entered an amended SPA with BG Group subsidiary BG Gulf Coast through which BG would purchase an additional 2 mtpa of LNG. The amended agreement would raise BG's total annual contract quantity to 5.5 mtpa of LNG.

BG will buy 3.5 mtpa of LNG when Sabine Pass' first train begins operations and purchase a portion of the additional 2 mtpa of LNG as operation of the second, third and fourth trains commence.

Cheniere is developing a liquefaction project at the Sabine Pass LNG terminal in Cameron Parish, La., which will include four liquefaction trains capable of producing up to 18 mtpa of LNG.

Construction of the liquefaction project's first phase is scheduled to begin this year; construction for the second phase is expected to begin in 2013. Operations of the first and second phase are estimated to start in 2015-2016 and 2017-2018, respectively.

The Sabine Pass terminal has regasification and send-out capacity of 4.0 Bcf/d and storage capacity of 16.9 Bcfe.

The Sabine Pass facility was originally constructed as an LNG import facility. The abundance of U.S. gas supply has prompted Cheniere and other LNG operators to seek to add LNG export capacity to existing import facilities.


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