FERC: Cheniere Can Begin Sabine Pass LNG Expansion

Cheniere Energy, Inc. said Thursday that it has received authorization from the Federal Energy Regulatory Commission (FERC) to commence site preparation construction activities to expand the capacity of its Sabine Pass liquefied natural gas (LNG) receiving terminal from 2.6 billion cubic feet per day (Bcf/d) to 4 Bcf/d

Through its wholly owned limited partnership, Sabine Pass LNG, L.P., Cheniere commenced construction on the Sabine Pass LNG receiving terminal in March 2005. Located in western Cameron Parish, La., initial start-up of the 2.6-Bcf/d facility is targeted for early 2008. In July 2005, Sabine submitted an application to the FERC seeking authorization to expand the terminal's capacity to 4 Bcf/d, which was approved in June 2006. The expansion is planned to be completed in 2009.

Cheniere is developing a platform of three, 100%-owned LNG receiving terminal projects along the U.S. Gulf Coast. The three terminals will have an aggregate send-out capacity of 9.9 Bcf/d. Cheniere plans to leverage its terminal platform by pursuing related LNG business opportunities both upstream and downstream of the terminals. Cheniere is also the founder and holds a 30% limited partner interest in a fourth LNG receiving terminal, is a partner in an LNG shipping venture, and engages in oil and gas exploration in the shallow waters of the U.S. Gulf of Mexico.

Cheniere is based in Houston, Texas, with offices in Johnson Bayou, La., and Paris, France.

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