Cheniere begins LNG production at Corpus Christi expansion project

Cheniere Energy has begun producing LNG from the first train of a midscale expansion of its Corpus Christi, Texas, export terminal, the company said Dec. 30.

The startup of the Stage 3 project, which will add 10 million mt/year of capacity at full construction, marks the second major addition of US liquefaction capacity to come online this year. The milestone came after the other project – Venture Global's new Plaquemines LNG terminal in Louisiana – exported its first commissioning cargo Dec. 26.

The commissioning activities are progressing at a time of relatively high global LNG spot prices and low shipping costs, which have supported strong cargo values from the US Gulf Coast.

Platts, part of S&P Global Commodity Insights, last assessed the Gulf Coast Marker for US FOB cargoes loading 30-60 days forward at $13.85/MMBtu Dec. 30, unchanged on the day.

Cheniere said it expects to achieve substantial completion of Train 1 by the end of the first quarter of 2025, or more than six months ahead of schedule. The unit is the first of seven midscale trains that the project entails.

The biggest US LNG exporter has said it expects to complete two additional trains by the end of 2025. The overall project was about 76% complete as of Nov. 30, with the remaining four units expected to come on stream in 2026, according to the company.

It was unclear when the Stage 3 expansion would produce sufficient volumes to be able to begin exports. A Cheniere spokesperson declined to elaborate on the expected timing of the first shipment.

Overall utilization at US LNG export facilities remained robust amid the commissioning work. Total scheduled feedgas deliveries Dec. 30 marked the sixth consecutive day that demand has exceeded 15 Bcf/d, Commodity Insights data showed, based on nominations for the morning cycle that could later be revised.

Both the Stage 3 and Plaquemines projects are expected to drive an increase in US LNG feedgas demand through 2025 and continue ramping up in 2026, while a longer-than-expected startup at either facility could result in tighter global LNG markets than previously expected, according to Commodity Insights analysts.

US-based gas market participants are also awaiting an increase in feedgas deliveries to the facilities as a source of domestic demand growth.

Cheniere reached a final investment decision on the Stage 3 project in June 2022. Three larger-scale trains are already in operation at the Texas export terminal with a combined capacity of about 15 million mt/year.

Venture Global commercially sanctioned the first phase of Plaquemines in May 2022, followed by an FID on the remaining facilities in March 2023 for a total nameplate capacity of 20 million mt/year. The developer announced the start of LNG production at Plaquemines Dec. 13, making the terminal the eighth US LNG export facility to startup in the Lower 48, starting with Cheniere's flagship Sabine Pass terminal in Louisiana, which shipped its first cargo in February 2016.

After Stage 3 and Plaquemines, the next LNG export project expected to come online in the US is the up to 18.1 million mt/year Golden Pass LNG terminal in Texas with a startup target in late 2025, although co-owner ExxonMobil has said startup could slip into 2026.