Cheniere unit signs another LNG export agreement

By OGJ editors
HOUSTON, Jan. 28
-- Cheniere Energy Partners LP’s subsidiary Sabine Pass Liquefaction LLC has concluded a nonbinding memorandum of understanding with Sumitomo Corp. under which Sumitomo intends to contract for up to about 1.5 million tonnes/year of processing capacity at the Sabine Pass LNG terminal in Cameron Parish, La.

Under the MOU, Sumitomo and Sabine agreed to negotiate definitive agreements for Sumitomo to contract bidirectional capacity. The final agreements would be subject to, among other conditions, receipt by each party of internal approvals, Sabine Pass's receipt of regulatory approvals, and a final investment decision by Sabine Pass to construct the liquefaction.

Charif Souki, chairman and chief executive officer of Cheniere Energy Partners, said, “With this MOU we have up to 7.7 million tpy of LNG processing capacity reserved. We have reached our targeted capacity for the first two trains and look forward to advancing discussions and entering into definitive agreements.”

Cheniere Partners owns 100% of the Sabine Pass LNG terminal, which has sendout capacity of 4 bcfd and storage capacity of 16.9 bcf of gas equivalent.

As currently contemplated, said the company’s announcement, Sabine Pass liquefaction would be designed and permitted for up to four modular LNG trains, each with peak processing capacity of up to about 7 MMcfd of natural gas and average liquefaction processing capacity of about 3.5 million tpy.

The initial project phase will include two modular trains and capacity to process about 1.2 bcfd of pipeline-quality gas. Cheniere said it intends to conclude contracts for at least 5 MMcfd/train of liquefaction capacity. With regulatory and company approvals, LNG export could commence as early as 2015, said the announcement.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...