Trains 5 & 6
Sabine Pass Liquefaction Project
Sabine Pass Liquefaction, LLC, a subsidiary of Cheniere Energy Partners, L.P. has initiated a project to develop two additional LNG trains adjacent to the Sabine Pass LNG receiving terminal in Cameron Parish, Louisiana. The Sabine Pass site can readily accommodate up to six LNG trains capable of processing over 3.5 Bcf/d of natural gas. The design production capacity of each liquefaction train would be approximately 4.5 million tons per annum (mtpa). Five LNG trains are currently construction.
Cheniere estimates that construction of the liquefaction capacity is comparable to expansion economics, since the Sabine Pass LNG terminal already has many of the facilities required for an export terminal. Sabine Pass Liquefaction will have access to the existing infrastructure, including five storage tanks and two berths at the Sabine Pass LNG terminal, as well as Cheniere Partner's 94-mile Creole Trail Pipeline, which is being reconfigured to reverse the flow of natural gas, making it a bi-directional pipeline.
Train 5 capacity of 3.75 mtpa has been contracted with foundation customers on a long-term FOB basis under sale and purchase agreements (SPAs) with Total and Centrica. Any excess capacity not sold under long-term SPAs to foundation customers is available for Cheniere Marketing to purchase as described under its SPA. Services under the SPAs include procuring the natural gas, liquefying the natural gas and loading LNG onto the customer’s vessels.
Sabine Pass Liquefaction has received all necessary regulatory permits. In order to reach FID and commence construction on a train, a project needs to have completed regulatory approvals, obtained financing and entered into SPAs sufficient to underpin the financing.
Access to Gas Supply
Cheniere’s Sabine Pass LNG facility in Cameron Parish, Louisiana, is ideally situated to capitalize on continued unconventional gas development. The Gulf Coast and Midcontinent regions contain five of the six major US shale plays, including the Barnett, Haynesville, Woodford, Fayetteville/Arkoma, and Eagle Ford, and three of the largest tight-sands plays, including the East Texas, Anadarko and Gulf Coast plays. The natural gas productive capacity in this region therefore represents a major portion of current and future U.S. production. Advanced Resources International, in a report commissioned for Cheniere's DOE filing, states that in 2010 about half of U.S. unconventional productive capacity (nearly 19 Bcfd) was sourced from the Gulf Coast/Mid-Continent corridor.