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Cheniere liquefying natural gas at a fourth plant

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LNG Industry,


According to the latest Bloomberg report, Cheniere Energy has begun liquefying natural gas at a fourth plant, keeping the company on a track that will double its export capacity this year.

The Houston-based company is already producing LNG from three plants at the terminal and is working to bring the fourth fully into service by the end of the year.

The startup of the fourth plant stands to unleash even more US gas into a worldwide market already awash with supplies. Since beginning operations early last year, Cheniere has sent cargoes of shale gas to about two dozen countries from Chile to China. That has delivered some relief to US gas drillers who are increasingly looking abroad for sources of demand and has bolstered domestic gas prices this year.

Cheniere said in a 9 June presentation that it expected the fourth plant to be substantially complete in November.

Pipeline deliveries of natural gas to the Sabine Pass terminal this year are already more than double what they were in 2016. Cheniere is now taking about 2 billion ft3 a day out of the US market.

The fourth plant still needs to be commissioned – when Cheniere’s contractor hands over operations to the company. That process, which can take months, is a key step in beginning Cheniere’s 20-year supply contract with Gail India Ltd.

The first three trains at Sabine Pass are contracted to Royal Dutch Shell Plc, Spain’s Gas Natural SDG SA and Korea Gas Corp. 

Read the article online at: https://www.lngindustry.com/liquefaction/02082017/cheniere-liquefying-natural-gas-at-a-fourth-plant/

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