Cheniere Energy Awards Contracts, Begins Construction on Creole Trail Natural Gas Pipeline

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Researched by Industrial Info Resources (Sugar Land, Texas)-- Cheniere Energy Incorporated (NYSE:LNG ) (Houston, Texas) has entered the construction phase on the first phase of its 137-mile Creole Trail natural gas pipeline. The first phase of the pipeline will involve the construction of 80 miles of 42-inch-diameter natural gas pipeline originating from the tail end of Cheniere’s Sabine Pass LNG terminal currently under construction on the Louisiana side of the Sabine River. From the Sabine Pass LNG terminal, the pipeline will extend northeast through Cameron, Calcasieu, Beauregard, Allen, Jefferson Davis and Acadia parishes where it will end near Rayne, Louisiana.

The construction of Phase I was divided into three separate spreads. The design and engineering contract for the $200 million-plus pipeline project was awarded to Willbros-RPI Incorporated of Houston, Texas. Construction on the first 18-mile, 42-inch diameter spread one began in September 2007. The construction contract for spread one was awarded to Sunland Construction of Eunice, Louisiana. Construction on the 42-inch-diameter, 22-mile spread two and the 36-mile spread three is slated to begin in November 2007. The pipeline is scheduled to be completed and placed into operation in the second quarter of 2008.

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