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Cheniere Energy will build sixth liquefaction train at Sabine Pass

Posted at 5:58 PM, Jun 03, 2019
and last updated 2019-06-03 18:58:36-04

U.S. liquefied natural gas (LNG) company Cheniere Energy Inc said on Monday it will build the sixth liquefaction train at its Sabine Pass LNG export terminal in Louisiana, Reuters is reporting.

Cheniere also said it expects to make a positive final investment decision as early as 2020 to add additional capacity in a third stage at its Corpus Christi LNG export terminal in Texas, the wire service reports.

Natural gas use is growing rapidly around the world as countries, like China, seek to wean their industrial and power sectors off dirtier coal. Cheniere is the biggest supplier of U.S. LNG and also the biggest buyer of gas in the country, Reuters reports.

Cheniere said it gave Bechtel, the lead contractor building its LNG terminals, notice to proceed with construction of Sabine 6. Cheniere has said it has a $2.5 billion contract with Bechtel to build Sabine 6 and expects the unit to enter service in 2023, Reuters reports.

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Gov. John Bel Edwards issued a press release on the development.

Here’s the release:

Today, Gov. John Bel Edwards highlighted Cheniere Energy’s final investment decision to build a sixth LNG liquefaction train and a third shipping berth at the company’s Sabine Pass LNG complex in Cameron Parish. The Louisiana site, now producing up to 25 million metric tons of liquefied natural gas per year, will add production of up to 5 million more metric tons. Cheniere Energy Inc. announced today that its board of directors has approved the project and has issued a full notice to proceed with construction to its contractor, Bechtel Oil, Gas and Chemicals Inc.

Cheniere Energy is the leading LNG exporter in the U.S. and Louisiana is the No. 1 state exporter of LNG to foreign markets. The new project will increase Cheniere Energy’s capital investment in Cameron Parish to $19.5 billion, including an estimated $3 billion invested in Train 6. The expansion will result in 1,500 new construction jobs and 68 permanent new direct jobs at Sabine Pass LNG. All told, the company employs 472 people at Sabine Pass today, with an additional 483 contractors working on-site.

“Cheniere Energy’s pioneering role in establishing the contemporary LNG industry in Louisiana has made our state the U.S. leader for LNG production and exports,” Gov. Edwards said. “In addition to having provided billions of dollars in capital investment and thousands of construction jobs, Cheniere’s Sabine Pass complex is a global leader in the energy sector. With the addition of a sixth production train and a third shipping berth, Cheniere is poised to extend its record investment among manufacturing projects in Louisiana. This is exciting progress that will create new jobs and spending throughout our economy.”

Cheniere anticipates completing the new project by late 2023.