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Sabine Pass Terminal Corpus Christi Project
Sabine Pass Liquefaction Aerial view of construction

Liquefaction Facilities: Trains 1-6

Sabine Pass Liquefaction, LLC, a subsidiary of Cheniere Partners, is developing, constructing and operating natural gas liquefaction facilities at the Sabine Pass LNG terminal located in Cameron Parish, Louisiana adjacent to the existing regasification facilities. The Sabine Pass site can readily accommodate up to six liquefaction trains capable of processing over 3.5 Bcf/d of natural gas. The production capacity of each LNG train is being designed for approximately 4.5 mtpa. The 1000+ acre Sabine Pass site is strategically situated to provide LNG export services given its large acreage position, proximity to unconventional gas plays in Louisiana and Texas, its interconnections with multiple interstate and intrastate pipeline systems, and its premier marine access less than 4 miles from the Gulf Coast. 

The construction costs of the liquefaction capacity is competitive due 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 terminal, as well as Cheniere Partner’s 94-mile Creole Trail Pipeline, which was reconfigured to reverse the flow of natural gas, making it a bi-directional pipeline.

Trains 1-4 have achieved Substantial Completion. Construction commenced on Train 5 in June 2015. All regulatory approvals have been received to construct and operate Train 6, and FID is expected to be reached upon obtaining commercial contracts and financing sufficient to support construction.

For the first five LNG trains, 19.75 of the 22.5 mtpa nominal production capacity (approximately 88%) has been contracted to third party, foundation customers on a long-term FOB basis under sale and purchase agreements (SPAs). Foundation customers include BG Group, Gas Natural Fenosa, KOGAS, GAIL, Total and Centrica. Any excess capacity not sold under long-term SPAs to foundation customers is available for Cheniere Marketing.

Our business model differs from other U.S. LNG projects in that in addition to processing natural gas into LNG (tolling model), we will procure the natural gas supply used for feedstock. Once the natural gas is liquefied, the customer takes delivery at the tailgate of the terminal. As a result, Cheniere is expected to become one of the largest buyers of natural gas in the U.S. once all of the trains are operational. We have built a world class operation to advantageously acquire feedstock for the terminal. Our gas procurement business has secured long-term transportation capacity on many pipelines to ensure reliable gas deliverability and diverse access to multiple producing basins. We have also entered into several supply arrangements to purchase natural gas from suppliers at prices discounted to applicable market indices.

Access to Gas Supply

Cheniere’s Sabine Pass LNG (SPL) facility in Cameron Parish, Louisiana is ideally suited to capitalize on the abundance of natural gas in the United States which has been created due to the development of unconventional reserves. SPL has the ability to access supplies from every supply source located in the continental United States east of the Rocky Mountains. SPL has been working with natural gas producers and infrastructure companies to purchase long term natural gas supply and ensure that the needed infrastructure is in place to transport the supply to the terminal. Currently SPL has purchased over 50% of its baseload natural gas needs for Trains 1-4 for the next few years and is fully contracted with transportation capacity to meet the full requirements of the terminal.



Last updated 04/25/17
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