Thursday, May 30, 2013

Cheniere to Begin Export LNG Trains 3 and 4

Cheniere Energy, operator of the Sabine Pass LNG facility, announced yesterday that it has secured $5.9 billion in debt financing from a syndicate of banks and will begin construction on trains 3 and 4 immediately with an expected completion in late 2015.  The company started work on trains 1 and 2 in August 2012, and that project is about 30% complete.  Trains 5 and 6 are in the planning phase, and the company expects to apply to the Federal Energy Regulatory Commission (FERC) for their approval in September 2013.

Each train has the nominal capacity of  approximately 4.5 mt/year, and the company has entered into contracts to sell 19.5 mt/year (my count), which exceeds the capacity of four trains.  I doubt Cheniere will have much trouble contracting for the rest of the facility's unapproved capacity.  Read this article for a good status report on the project.

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