Cheniere starts construction on second LNG export project
Houston-based LNG player Cheniere said it has made a positive final investment decision for its liquefaction project near Corpus Christi, Texas, and has issued a notice to proceed to Bechtel to construct the first two trains.
This comes right after the Energy Department on Tuesday issued a final authorization for the Corpus Christi project to export LNG to countries that do not have a free trade agreement with the United States.
The Corpus Christi project is designed for up to three trains with production capacity of approx. 13.5 million tonnes per annum, three LNG storage tanks with capacity of about 10.1 Bcfe, two LNG carrier docks and a 22-mile, 48″ natural gas supply pipeline.
The first train is expected to start operations as early as 2018, with the second train expected to commence operations approximately six to nine months thereafter.
“We have initiated construction on our second LNG export facility, the Corpus Christi liquefaction project, located on the Coastal Bend of Texas along the Gulf of Mexico. Including our LNG export facility at Sabine Pass, we now have six trains under construction, with first LNG expected at Sabine Pass from Train 1 by year end,” said Charif Souki, Chairman and CEO of Cheniere.
Total project costs of about $11.5 billion for the first two trains, two LNG storage tanks, one dock and the natural gas supply pipeline, will be funded with $3.1 billion of project equity and $8.4 billion of debt.
Corpus Christi Holdings, a wholly owned subsidiary of Cheniere, has closed on its previously announced credit facility for the first two trains totaling approximately $8.4 billion.
Subsequent to the close of the credit facility, Cheniere CCH HoldCo II, a unit of Cheniere, has closed on $1.0 billion of the previously announced $1.5 billion aggregate principal amount of 11% senior secured notes due 2025 with EIG Management.
The convertible notes, together with the CCL credit facility and an equity contribution of approximately $500 million from Cheniere, complete the financing required to begin developing, constructing and placing into service the first two trains.
LNG World News Staff; Image: Bechtel