Cheniere signs another LNG sales agreement

By OGJ editors
HOUSTON, Feb. 14
-- Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners LP, Houston, has signed memoranda of understanding to sell two units of a Dominican Republic power generator up to 600,000 tonnes/year (tpy) of LNG.

The two companies are Empresa Generadora de Electricidad Haina SA (EGE Haina) and Cia. de Electricidad de San Pedro de Macoris (CESPM), both of which are managed by Basic Energy.

Under the agreements, Basic and Sabine will negotiate definitive sales and purchase agreements under which Basic will purchase LNG for receipt at a designated receiving terminal, delivered ex-ship. The agreements would be subject to certain conditions, said the announcement, including receipt by each party of requisite internal approvals and Sabine's receipt of regulatory approvals and making a final investment decision to construct liquefaction adjacent its Sabine Pass LNG terminal in western Cameron Parish, La., on the Sabine Pass Channel. The terminal has sendout capacity of 4 bcfd and storage capacity of 16.9 bcf of gas equivalent.

According to the Cheniere Energy announcement, EGE Haina is the largest single generator formed out of the 1999 privatization of the Dominican Republic power sector. CESPM is the largest independent power producer. “Both companies are substantially operated by Basic Energy,” said the statement.

Their combined portfolio includes more than 880 Mw of installed capacity throughout the country consisting of dual fuel, coal, and natural gas plants. Basic Energy focuses on reducing electricity production costs in the country by securing competitively priced US LNG based on a New York Mercantile Exchange index.

As currently contemplated, says Cheniere, liquefaction at Sabine Pass would be designed and permitted for up to four modular LNG trains, each with peak processing capacity of up to 700 MMcfd of gas and an average liquefaction processing capacity of about 3.5 million tpy.

The initial project phase is to include two modular trains and capacity to process about 1.2 bcfd of pipeline-quality natural gas. The company intends to conclude contracts for at least 500 MMcfd/train of natural gas liquefaction capacity.

Export could begin as early as 2015, said the company, assuming timely regulatory approvals and a final investment decision.



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