Cheniere Energy: Sixth LNG train at Sabine Pass terminal likely completed by 2022’s first half

Image credit Bechtel

Liquefied natural gas (LNG) firm Cheniere Energy reported Thursday that its sixth liquefaction train under construction at a Gulf Coast export terminal is nearly completed.

Houston-based Cheniere expects Train 6 at the Sabine Pass LNG Terminal to be substantially completed in the first half of 2022, according to the company’s earnings report. Sabine Pass, located in Cameron Parish along the Louisiana coast, currently has five liquefaction trains in operation and producing close to 30 million metric tons per year (mpta).

This facility off-takes U.S. natural gas and liquefies it by cooling it to about -260 degrees Fahrenheit (-162 Celsius). The LNG can be carried stably on shipping taking the gas around the world to markets for power generation, heating and industrial purposes.

Cheniere owns the 94-mile Creole Trail Pipeline which interconnects the Sabine Pass LNG Terminal with a large number of interstate pipelines. The company also owns and operates an LNG terminal along the coast of Corpus Christi, Texas.

The U.S. natural gas production has risen historically due to successes in drilling fields utilizing shale plays, horizontal drilling and hydraulic fracturing. The all-time highs in production has pushed the U.S. into net energy exporting, including deals with nations which want to re-gasify the LNG and use it in power generation.

For example, Cheniere in 2018 signed an LNG sale and purchase agreement with China National Petroleum Corp., in which the latter would purchase about 1.2 mtpa.

The U.S. LNG potential is projected to increase to 11.9 billion cubic feet daily in 2022, a 10-percent increase from the past year. A Shell Energy forecast predicts global LNG demand may double in 20 years and reach 700 million metric tons annually, according to reports.

Overall, Cheniere Energy reported Tuesday that its LNG revenues topped $5.9 billion for the six months ending June 30, more than 20 percent higher than the same period in 2020.

Engineering and construction firm Bechtel has worked with Cheniere Energy on its Sabine Pass and Corpus Christi projects.

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