Page 4 - NorthAmOil Week 25 2022

NorthAmOil COMMENTARY NorthAmOil

Cheniere, Venture Global make

LNG progress as Chevron

becomes buyer

The US LNG industry continues to take strides forward, with Cheniere Energy

announcing an FID on its Corpus Christi expansion, while Chevron has struck
deals to buy LNG from both Cheniere and Venture Global

US IT has been another busy week for the US LNG dependence on Russia for gas supplies. The FID
industry, which continues to take strides for- comes as no surprise, as Cheniere has been talk-
WHAT: ward. On June 22, leading US LNG producer ing up Corpus Christi Stage 3 for some time, but
News of a US LNG project Cheniere Energy said it had taken a final invest- it is now expected to be followed by other LNG
final investment decision ment decision (FID) on the Stage 3 expansion of projects on the Gulf Coast being sanctioned,
and several offtake deals its Corpus Christi LNG terminal in Texas. that were previously considered less likely to
have been announced On the same day, both Cheniere and another move forward.
this week. Gulf Coast LNG producer, Venture Global LNG,
announced separate sales and purchase agree- Stage 3
WHY: ments (SPAs) with Chevron. The deals mark the Corpus Christi Stage 3 represents a shift away
Demand for LNG super-major’s entry into the booming trade in from Cheniere’s existing model of 5mn tonne
continues to grow, US LNG, giving it a supply of the super-chilled per year (tpy) liquefaction trains. The company
and both the FID and fuel to sell overseas amid growing demand. A has six such trains in operation at Sabine Pass
Chevron’s move to strike day earlier, Venture Global also announced that LNG and three at Corpus Christi. Stage 3, on
offtake agreements it had executed two further SPAs with EnBW the other hand, will consist of up to seven ‘mid-
illustrate a desire to in its first offtake deal with a German company, scale’ trains with a combined capacity of around
capitalise on this. which comes as Germany and Europe more 10mn tpy.
broadly work to phase out Russian natural gas This week, Cheniere issued a full notice to
WHAT NEXT: imports. proceed to contractor Bechtel Energy, having
Cheniere’s Corpus All of these moves illustrate the strength in issued a limited notice to proceed earlier this
Christi LNG expansion demand for US LNG, as well as the role US year for preliminary work at the site. Bechtel
is anticipated to enter producers hope to play in ending Europe’s also built all of Cheniere’s existing trains.
service by the end of
2025.

Corpus Christi Stage
3 represents a
change from 5mn tpy
liquefaction trains for
Cheniere.

P4 www. NEWSBASE .com Week 25 23•June•2022