Cheniere Energy, Inc. has announced that the ink on final investments is drying and the awaited liquefaction export project near Corpus Christi, Texas is on the road to completion.
On Wednesday, the company’s Board of Directors made the call to Bechtel Oil, Gas and Chemicals, Inc. to commence construction of the first two natural gas liquefaction trains. The CCL Project is designed for up to three trains, according to Cheniere Energy. The first train is expected to start operations as early as 2018, with the second train expected to commence operations approximately six to nine months afterwards.
According to reports, the new LNG project includes expected aggregate nominal production capacity of approximately 13.5 million tons per annum (mtpa), three LNG storage tanks with capacity of approximately 10.1 billions of cubic feet equivalent (Bcfe), two LNG carrier docks and a 22-mile, 48″ natural gas supply pipeline.
“We have initiated construction on our second LNG export facility, the Corpus Christi liquefaction project, located on the Coastal Bend of Texas along the Gulf of Mexico. Including our LNG export facility at Sabine Pass, we now have six trains under construction, with first LNG expected at Sabine Pass from Train 1 by year end,” said Charif Souki, chairman and CEO of Cheniere in a press release. “For these major projects, getting to the point of commencing construction represents the culmination of years of dedicated hard work by all of our employees, Bechtel, other strategic partners, and legislative and government officials. We would like to thank all for their efforts and look forward to successful project execution in Corpus Christi.”
The company tallies the project’s bill at roughly $11.5 billion for the first two trains, two of the LNG storage tanks, one of the docks and the natural gas supply pipeline. The venture will be funded with approximately $3.1 billion of project equity and approximately $8.4 billion of debt. In addition, roughly 225 new jobs will be created to run the operations.
The decision to proceed with the construction came right after the late Tuesday approval from the United States Energy Department. Cheniere’s new project is now the sixth LNG facility to receive approval from the Obama administration to export natural gas worldwide.