Cheniere Energy Inc. (NYSE: LNG) announced today that it has reached a positive FID and plans to continue the construction of its third liquefaction train for its LNG facility in Corpus Christi, Texas.
Baker Hughes, a GE company (NYSE: BHGE), will be supplying the turbomachinery equipment for this expansion. This FID represents the first for new LNG capacity in the U.S. since 2015.
Upon completion of the third train, the facilities production capacity will raise to approximately 13.5 Mtpa of LNG.
BHGE is supplying six PGT25+G4 DLE gas turbines that will be used to drive various compressors at the plant. BHGE has fulfilled similar orders for two previous trains at this facility and for five trains at Cheniere’s Sabine Pass plant.
Corpus Christi LNG
The Corpus Christi Liquefaction project is located on the La Quita Channel on the northeast side of Corpus Christi Bay in San Patricio County, Texas, approximately 15 nautical miles off the coast. The project first began construction in May of 2015.
The project has successfully contracted 8.42 Mtpa to third party, foundation customers.
Customers include:
- Pertamina, Endesa (BME: ELE),
- Iberdrola (BME: IBE),
- Gas Natural Fenosa (BME: GAS),
- Woodside Petroleum Limited (ASX: WPL),
- Electricite de France SA (EPA: EDF), and
- Energias de Portugal, SA (ELI: EDP).
By the time the project is completed it will consist of five trains, and is expected to have a production capacity of up to 22.5 Mtpa per annum of LNG.
Unique to Cheniere’s business model it will also be buying natural gas for feedstock in addition to processing natural gas into LNG. It plans to become one of the largest buyers of natural gas in the U.S. upon completion of all the trains. To facilitate this capability Cheniere is building a 23-mile 48” pipeline that would connect the Corpus Christi LNG operation to several interstate and intrastate pipelines.
