Cheniere Invites Capacity Offers at Sabine Pass LNG Terminal

Cheniere Energy said that it is issuing invitations for offers on up to 500 million cubic feet per day (MMcf/d) of the remaining long-term regasification capacity at the Sabine Pass liquefied natural gas (LNG) receiving terminal. The Sabine Pass LNG capacity offering will close on May 15.

The company also announced that its wholly owned subsidiary, Cheniere LNG Marketing, entered into long-term terminal use agreements for 1.5 billion cubic feet per day (Bcf/d) of capacity at the Sabine Pass LNG receiving terminal and for 1 Bcf/d at the Corpus Christi LNG receiving terminal. Total and Chevron each hold 1 Bcf/d of capacity at Sabine Pass.

Sabine Pass LNG is currently under construction in Cameron Parish, Louisiana, and is expected to be operational in early 2008. The facility will have rated capacity in its initial phase of 2.6 Bcf/d. In July 2005, Cheniere applied to the Federal Energy Regulatory Commission (FERC) seeking authorization to expand the facility's rated capacity to 4 Bcf/d. The expansion capacity is planned to be operational in 2009.

Corpus Christi LNG is permitted with a rated capacity of 2.6 Bcf/d and received an initial authorization to commence construction from the FERC in December 2005. Site preparation activities are expected to kick off in the second quarter of this year, and the terminal is expected to be operation in 2010.