Reports related to this article:
Project(s): View 2 related projects in PECWeb
Plant(s): View 2 related plants in PECWeb
Released March 06, 2023 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Cheniere Energy Incorporated (NYSE:LNG) (Houston, Texas) recently made news when it announced its subsidiaries had begun the permitting process for its proposed Sabine Pass Stage 5 Expansion Project. The project would add about 20 million tonnes per annum (mtpa) of liquefied natural gas (LNG) production capacity to Cheniere's Sabine Pass facility in Cameron Parish, Louisiana.
The expansion project would include up to three liquefaction trains, each with a production capacity of approximately 6.5 mtpa of LNG; a boil-off-gas (BOG) re-liquefaction unit with an approximate production capacity of 0.75 mtpa of LNG, and two 220,000-cubic-meter LNG storage tanks, Cheniere said in a February 23 press release.
"We expect to submit the full filing before the end of the year and look forward to working with FERC (Federal Energy Regulatory Commission) on permitting this major brownfield capacity expansion," said Cheniere Chief Executive Officer Jack Fusco during the company's fourth-quarter 2022 earnings conference call on February 23.
Cheniere has engaged Bechtel Corporation (Reston, Virginia) to complete a front-end engineering and design (FEED) study of the expansion project. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for the project report.
Cheniere's Sabine Pass facility already includes six operating liquefaction trains with a total production capacity of 30 mtpa; its Corpus Christi LNG facility in Gregory, Texas, has three liquefaction trains in operation with a total capacity of 15 mtpa.
In all, the company has more than 30 mtpa under development or under construction, Fusco said. On top of the planned 20-mtpa expansion at Sabine Pass, this includes the third expansion stage at the Corpus Christi facility, which began construction in September, consisting of seven mid-scale LNG trains that will produce 10.5 mtpa. Subscribers can read a detailed project report on the production plant.
During a capital allocation presentation last year, Fusco said, "We showed a potential 90 million-tonne platform across the Sabine Pass and Corpus Christi. Our infrastructure platform is an enormous competitive advantage which this project is expected to capitalize on in order to deliver brownfield economics."
The world's hunger for natural gas continues to grow, especially amid the ongoing war in Ukraine and the shut-off of natural gas supplies from Russia to Europe.
Anatol Feygin, Cheniere's chief commercial officer, outlined the global situation and the role of the U.S. in helping to meet demand during the company's earnings conference call.
"Overall, U.S. exports increased 9% year-on-year, up 6.3 million tons to 76.5 mtpa in 2022, despite the Freeport (LNG) outage during the second half of the year," Feygin said. U.S. LNG represented nearly 40% of the growth in global LNG supply, he added.
"Having lost Russia as a significant supplier, Europe became a substantial demand center for LNG, attracting approximately 70% of all U.S. LNG in 2022 as prices reached record levels and redirected destination-flexible U.S. LNG volumes to address the deficit," Feygin continued. "Clearly, destination-flexible U.S. LNG was able to answer Europe's call for natural gas supply in 2022."
For related information, see February 22, 2023, article - U.S. Displays Superpower Status with LNG.
Meanwhile, investment in downstream LNG infrastructure continues to grow not only in Europe, but in other parts of the world, Feygin said. More than 370 million tons of regasification capacity is under development, "which is equivalent to about 80% of global LNG trade today. Furthermore, nine new markets are expected to enter the LNG trade in the next two years, including Vietnam, the Philippines and Ghana, just to name a few."
He concluded: "Investments in new LNG supply are critically needed not only to address the current market imbalance and meet the expected long-term demand growth, but also to offset declining production from certain legacy production facilities."
Subscribers can click here for a list of all project reports referenced in this article and click here for the related project profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
The expansion project would include up to three liquefaction trains, each with a production capacity of approximately 6.5 mtpa of LNG; a boil-off-gas (BOG) re-liquefaction unit with an approximate production capacity of 0.75 mtpa of LNG, and two 220,000-cubic-meter LNG storage tanks, Cheniere said in a February 23 press release.
"We expect to submit the full filing before the end of the year and look forward to working with FERC (Federal Energy Regulatory Commission) on permitting this major brownfield capacity expansion," said Cheniere Chief Executive Officer Jack Fusco during the company's fourth-quarter 2022 earnings conference call on February 23.
Cheniere has engaged Bechtel Corporation (Reston, Virginia) to complete a front-end engineering and design (FEED) study of the expansion project. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for the project report.
Cheniere's Sabine Pass facility already includes six operating liquefaction trains with a total production capacity of 30 mtpa; its Corpus Christi LNG facility in Gregory, Texas, has three liquefaction trains in operation with a total capacity of 15 mtpa.
In all, the company has more than 30 mtpa under development or under construction, Fusco said. On top of the planned 20-mtpa expansion at Sabine Pass, this includes the third expansion stage at the Corpus Christi facility, which began construction in September, consisting of seven mid-scale LNG trains that will produce 10.5 mtpa. Subscribers can read a detailed project report on the production plant.
During a capital allocation presentation last year, Fusco said, "We showed a potential 90 million-tonne platform across the Sabine Pass and Corpus Christi. Our infrastructure platform is an enormous competitive advantage which this project is expected to capitalize on in order to deliver brownfield economics."
The world's hunger for natural gas continues to grow, especially amid the ongoing war in Ukraine and the shut-off of natural gas supplies from Russia to Europe.
Anatol Feygin, Cheniere's chief commercial officer, outlined the global situation and the role of the U.S. in helping to meet demand during the company's earnings conference call.
"Overall, U.S. exports increased 9% year-on-year, up 6.3 million tons to 76.5 mtpa in 2022, despite the Freeport (LNG) outage during the second half of the year," Feygin said. U.S. LNG represented nearly 40% of the growth in global LNG supply, he added.
"Having lost Russia as a significant supplier, Europe became a substantial demand center for LNG, attracting approximately 70% of all U.S. LNG in 2022 as prices reached record levels and redirected destination-flexible U.S. LNG volumes to address the deficit," Feygin continued. "Clearly, destination-flexible U.S. LNG was able to answer Europe's call for natural gas supply in 2022."
For related information, see February 22, 2023, article - U.S. Displays Superpower Status with LNG.
Meanwhile, investment in downstream LNG infrastructure continues to grow not only in Europe, but in other parts of the world, Feygin said. More than 370 million tons of regasification capacity is under development, "which is equivalent to about 80% of global LNG trade today. Furthermore, nine new markets are expected to enter the LNG trade in the next two years, including Vietnam, the Philippines and Ghana, just to name a few."
He concluded: "Investments in new LNG supply are critically needed not only to address the current market imbalance and meet the expected long-term demand growth, but also to offset declining production from certain legacy production facilities."
Subscribers can click here for a list of all project reports referenced in this article and click here for the related project profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
