Cheniere Starts Producing at Shale Gas Export Terminal, ING Says

Cheniere has had a rocky year, dealing with a slide in U.S. natural gas prices, the ouster of its co-founder and chief executive officer, Charif Souki, and scrutiny from billionaire activist investor Carl Icahn. Its stock has fallen 48 percent this year.

With gas demand in parts of Asia weakening, U.S. suppliers are turning their attention to Europe as their primary market. BG Group spokeswoman Kim Blomley referred a request for comment on the startup to Cheniere on Wednesday.

Plants such as Sabine Pass will cool and liquefy natural gas to 1/600th of its volume for easier loading onto tankers. Cheniere plans to build at least six “trains” that produce LNG at Sabine Pass by late 2018, allowing the terminal to supply more than 3.5 billion cubic feet a day. The project is estimated to cost at least $15 billion.

--With assistance from Anna Shiryaevskaya and Christine Buurma.

To contact the reporters on this story: Naureen S. Malik in New York at nmalik28@bloomberg.net; Harry R. Weber in Houston at hweber14@bloomberg.net. To contact the editors responsible for this story: Lynn Doan at ldoan6@bloomberg.net Stephen Cunningham


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