HOUSTON, June 10, 2015 /PRNewswire/ -- Cheniere
Energy, Inc. ("Cheniere") (NYSE MKT: LNG) today announced two
significant liquefied natural gas ("LNG") project developments
that, if completed, are projected to add up to approximately 19
million tonnes per annum ("mtpa") of incremental LNG production
capacity and would bring Cheniere's aggregate nominal LNG
production capacity to approximately 60 mtpa by 2025.
Cheniere is developing approximately 9 mtpa of incremental LNG
production capacity through the addition of two liquefaction trains
adjacent to the existing site of the Corpus Christi liquefaction project (the "CCL
Project"). Expected nominal LNG production capacity of each of
these liquefaction trains is approximately 4.5 mtpa, which would
increase the expected aggregate nominal LNG production capacity at
the CCL Project to approximately 22.5 mtpa. Cheniere initiated the
regulatory process in June 2015 by
filing the National Environmental Policy Act pre-filing request
with the FERC and the FTA and non-FTA approval requests with the
DOE. Regulatory approvals would be expected in 2017.
In addition, Cheniere has agreed in principle to partner with
Parallax Enterprises, LLC ("Parallax"), to develop up to 10 mtpa of
LNG production capacity through Parallax's two mid-scale projects,
Live Oak LNG ("Live Oak") and
Louisiana LNG ("LLNG"). Live Oak
is located on the Calcasieu Ship Channel in southwestern
Louisiana, and LLNG is located on
the Mississippi River approximately 40 miles from New Orleans. Both projects are expected to
have two liquefaction trains designed for LNG production capacity
of approximately 2.5 mtpa each, utilizing liquefaction process
technology and modular equipment developed by Chart Industries,
Inc. The facilities are being engineered by Bechtel Oil, Gas, &
Chemicals, Inc.
"Our latest LNG development projects include two additional
liquefaction trains adjacent to our Corpus Christi liquefaction site and four
mid-scale liquefaction trains to be developed at two sites located
in Louisiana. This next phase of
growth would bring our expected aggregate nominal LNG production
capacity to approximately 60 mtpa by 2025," said Charif Souki, Cheniere's Chairman and CEO. "We
expect that these liquefaction trains could be funded from
internally generated cash flows, which would allow us to continue
to be one of the lowest cost suppliers of LNG in the market and
give us more flexibility in terms of contracting and selling
volumes on a more tailored basis to meet the individual needs of
global LNG buyers."
Mr. Souki continued, "We continue to market long-term contracts
for Train 3 at Corpus Christi and
Train 6 at Sabine Pass, and plan
to finalize the sale of approximately 3 mpta of capacity under
20-year agreements before we make a positive final investment
decision ("FID") on each train, reaching a total of approximately
32 mtpa of LNG under long-term third-party contracts out of a total
of 40.5 mtpa by 2020. We think we can continue to grow this
platform at 10 percent per year until 2025, and reach approximately
60 mtpa of expected total nominal LNG production capacity with our
new projects while remaining a low cost global LNG supplier."
Cheniere anticipates both project developments could be under
construction as early as 2017, subject to receiving all required
regulatory approvals and reaching FID. The projects would be
targeted to begin production as early as 2021, with all
approximately 19 mtpa targeted to be in production by 2025.
About Cheniere Energy, Inc.
Cheniere Energy, Inc. is a Houston-based energy company primarily engaged
in LNG-related businesses. Through its subsidiary, Cheniere Energy
Partners, L.P., Cheniere is developing a liquefaction project at
the Sabine Pass LNG terminal (the "SPL Project") adjacent to the
existing regasification facilities for up to six trains, each of
which is expected to have a nominal production capacity of
approximately 4.5 mtpa. Construction has begun on trains 1 through
4 at the SPL Project. Cheniere is also developing liquefaction
facilities near Corpus Christi,
Texas. The CCL Project is being designed for up to five
trains, with expected aggregate nominal production capacity of
approximately 22.5 mtpa of LNG, four LNG storage tanks with
capacity of approximately 13.5 Bcfe and two LNG carrier docks.
Cheniere believes that LNG exports from the CCL Project could
commence as early as 2018. Construction has begun on the first two
trains at the CCL Project. Cheniere has agreed in principle to
partner with Parallax Enterprises, LLC for the development of up to
10 mtpa of LNG production capacity through Parallax's two mid-scale
projects, Live Oak LNG and Louisiana LNG.
This press release contains certain statements that may include
"forward-looking statements" within the meanings of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical fact, included herein are "forward-looking statements."
Included among "forward-looking statements" are, among other
things, (i) statements regarding Cheniere's business strategy,
plans and objectives, including the development, construction and
operation of the liquefaction facilities, (ii) statements regarding
expectations regarding regulatory authorization and approvals,
(iii) statements expressing beliefs and expectations regarding the
development of Cheniere's LNG terminal and pipeline businesses,
including liquefaction facilities, (iv) statements regarding the
business operations and prospects of third parties, (v) statements
regarding potential financing arrangements, and (vi) statements
regarding future discussions and entry into contracts. Although
Cheniere believes that the expectations reflected in these
forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may
prove to be incorrect. Cheniere's actual results could differ
materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those
discussed in Cheniere's periodic reports that are filed with and
available from the Securities and Exchange Commission. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Other than as
required under the securities laws, Cheniere does not assume a duty
to update these forward-looking statements.
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SOURCE Cheniere Energy, Inc.