PAA, Cheniere ink storage agreement

Plains All American Pipeline said it has entered into a 10-year firm storage deal with Houston-based LNG player Cheniere Energy.

The company informed in a statement on Monday that its unit Pine Prairie Energy Center will provide 8 billion cubic feet of firm natural gas storage capacity to Cheniere.

The storage capacity service will start in 2018 and serve the needs of Cheniere’s Sabine Pass liquefaction and export facility in Louisiana.

Corey Grindal, Vice President of Supply at Cheniere noted that Pine Prairie’s storage facility is located in a place where Cheniere can access its existing infrastructure connected to the terminal.

The agreement will enable Cheniere to manage the load swings during the construction and operation of the liquefaction trains at Sabine Pass, he said.

Trains one and two at Cheniere’s Sabine Pass export plant are undergoing commissioning with the first cargo leaving the facility in February.

Trains three to four are currently under construction and the company has received permission to build the sixth train.

With each train having a 4.5 million tons per year liquefaction capacity, at full build-out will be producing 19.75 mtpa of liquefied natural gas in total.

LNG World News Staff