Cheniere takes FID on Corpus Christi Stage 3 LNG project
U.S. LNG export project developer Cheniere Energy has taken a positive financial investment decision (FID) on Corpus Christi Stage 3 liquefaction project.
On 22 June, Cheniere announced that its board of directors made a positive FID on more than ten million tonnes per annum (mtpa) of LNG Corpus Christi Stage 3 expansion project (CCL Stage 3).
In addition, it issued full notice to proceed to Bechtel Energy to continue construction on CCL Stage 3, which began earlier this year under limited notice to proceed.
The Corpus Christi Stage 3 expansion project consists of up to seven midscale trains. Each of the trains will have a liquefaction capacity of approximately 1.49 mtpa. The terminal’s total nominal capacity would amount to approximately 25 mtpa.
“Reaching FID on Corpus Christi Stage 3 represents an important milestone for Cheniere as we move forward on this significant growth project, which will strengthen our (…) LNG infrastructure platform, provide much-needed volumes to the global LNG market by the end of 2025,” said Jack Fusco, Cheniere’s CEO.
“CCL Stage 3 is supported by a truly global portfolio of long-term customers and reflects the call for investment in natural gas infrastructure around the world to support environmental priorities and long-term energy security.”
On 15 June, Cheniere’s wholly-owned subsidiary, Cheniere Corpus Christi Holdings (CCH) closed on an amended and restated approximately $4 billion senior secured term loan due 2029, as well as an amended, extended and upsized $1.5 billion working capital facility due 2027.
In conjunction with the financing, Cheniere contributed its wholly-owned equity interests in Corpus Christi Liquefaction Stage III (CCL Stage III) to CCH, and merged CCL Stage III into Corpus Christi Liquefaction (CCL), a subsidiary of CCH, with CCL continuing as the surviving company.
Borrowings under the CCH 2029 term loan are being used to fund approximately half of the total expected cost to develop, construct, and place into service CCL Stage 3, the associated pipeline expansion, and other infrastructure at or near the project, and for related business purposes. The remaining costs are to be funded from Cheniere.