Cheniere's 6th liquefaction train at Sabine Pass terminal produces first LNG

Cheniere Energy Partners produced the first LNG at the sixth liquefaction train at the Sabine Pass terminal in Cameron Parish, Louisiana, one year ahead of the train's previous completion schedule, the company said on Nov. 23.

Construction company Bechtel Energy will transfer the train to Cheniere Energy Partners at the substantial completion stage, which should occur in the first quarter of 2022, according to a news release.

The completed train will boost the production capacity of Sabine Pass, which has had five 5-million-mt/year trains in operation, to roughly 30 million mt/year and Cheniere Energy's total US LNG production capacity to 45 million mt/year, which includes the 15 million mt/year production capacity at the Corpus Christi export facility in Texas.

Cheniere has been securing LNG supply deals to underpin a 2022 final investment decision for the fully permitted Stage 3 expansion of its Corpus Christi terminal, which includes the development of up to seven midscale liquefaction trains with a 10 million mt/year total expected nominal production capacity.

Cheniere executives on the company's most recent earnings call said the deals were driven by buyers' urgency to secure long-term contracts amid ongoing high LNG prices in Europe and Asia.

"With global economic activity increasing and the winter season approaching in key LNG markets around the world, providing additional supplies of reliable LNG can help companies, countries and communities around the world during this high-demand period," said Jack Fusco, Cheniere chairman, president and CEO.

Cheniere received the Federal Energy Regulatory Commission's approval to introduce natural gas to the sixth Sabine Pass train in late September, a week after the company requested the authorization.

Separately, Cheniere announced Nov. 23 that its subsidiary Cheniere Marketing International has reached a binding agreement for Foran Energy Group, a gas distributor in China, for purchase of 0.3 million mt/year of LNG for a 20-year term starting 2023.