Cheniere greenlights initial Sabine Pass LNG trains
Cheniere has completed all milestones and has issued contractor Bechtel a full notice to proceed on the construction of the first two liquefaction trains of the Sabine Pass liquefaction project, officials said on Thursday.
The first liquefaction train is expected to start operations as early as 2015, with the second liquefaction train expected to commence operations six to nine months thereafter, according to the company.
“The Sabine Pass LNG terminal will become the first facility in the contiguous US capable of exporting natural gas as LNG,” said Charif Souki, CEO of Cheniere.
“Two years after announcing our plans to develop the liquefaction facility, we will begin construction,’ he added. “It is a testament to the flexibility of the US markets and institutions that a small company like ours was able to accomplish so much in a short time.”
In those two years, Cheniere was able to finalize long-term commercial arrangements with four global LNG buyers for over 2 billion cubic feet/day for 20 years as well as negotiate a construction agreement for the first 1 billion cubic feet/day on a lump sum basis, the company said.
In addition, Cheniere successfully worked with government agencies to receive all necessary permits to build a facility with no precedent in the continental US, the CEO said.
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