Page 11 - NorthAmOil Week 47 2021

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Cheniere produces LNG at Sabine Pass

Train 6, strikes another offtake deal

US GULF COAST IT has been a busy week for leading US LNG LNG to France’s Engie in June. That agreement
producer Cheniere Energy. On November has not been formally announced by either
23, the company announced that it had pro- company involved. It is notable because Engie
duced its first LNG at Train 6 of its Sabine Pass had previously backed out of supply deal talks
liquefaction terminal on the Louisiana Gulf with another US LNG developer, NextDecade,
Coast. The following day, Cheniere said it had reportedly because of French opposition to
also struck a long-term supply deal with Chi- hydraulic fracturing, which is used to produce
nese natural gas distribution company Foran the feed gas for liquefaction terminals on the
Energy Group. Gulf Coast. (See NorthAmOil Week 46)
Under the 20-year sales and purchase agree- The latest supply deal, with Foran, is expected
ment (SPA), Foran will buy 300,000 tonnes per to move Cheniere a step closer to a final invest-
year (tpy) of LNG from Cheniere Marketing ment decision (FID) on the Stage 3 expansion of
starting in 2023. The purchase price for LNG its Corpus Christi LNG terminal in Texas. The
under the SPA is indexed to the Henry Hub FID is anticipated in 2022, and analysts have said
price, plus a fee, Cheniere said. the company now has enough LNG contracted
The SPA is the latest in a series announced by to move forward with the expansion.
Cheniere or reported elsewhere in recent weeks. Meanwhile, the start of LNG production at
The US company has also struck new long-term Sabine Pass Train 6 represents another capacity
deals with two other Chinese companies – ENN expansion at what is already the US’ largest liq-
Natural Gas and Sinochem – as well as commod- uefaction plant. Once substantial completion at
ity trader Glencore since early October. Train 6 is reached – which is anticipated in the
Separately, it emerged in a recent filing first quarter of 2022, roughly a year ahead of
with the US Department of Energy (DoE) that schedule – Sabine Pass’ total production capacity
Cheniere had signed an agreement to supply will reach 30mn tpy.™
ENERGY TRANSITION

NextDecade applies to build

CCS facility at Rio Grande LNG

TEXAS US LNG developer NextDecade has applied to it had redesigned Rio Grande to produce 27mn
the US Federal Energy Regulatory Commis- tonnes per year (tpy) of LNG from five trains
sion (FERC) to incorporate a carbon capture instead of six. At this point, the project was set
and storage (CCS) system into its proposed Rio to yield 21% fewer CO2 equivalent emissions
Grande LNG project in Brownsville, Texas. than it would have done originally. NextDecade
In a November 17 submission to the FERC, a subsequently unveiled plans to develop CCS
K&L Gates lawyer for Rio Grande LNG, David capacity at Rio Grande in October 2020, saying it
Wochner, said the company was seeking a “lim- would ultimately target carbon neutrality once it
ited amendment” to the authorisation to build managed to address the remaining 10% of emis-
the liquefaction terminal. The amendment sions that the CCS facility would not capture.
would allow NextDecade to incorporate a CCS NextDecade had been targeting a final invest-
system into the approved design and operation ment decision (FID) for 2021, having delayed it
of Rio Grande LNG. from 2020. However, it faces another setback
The move comes as NextDecade attempts to after a court said the environmental analysis in
showcase Rio Grande’s environmental creden- the original FERC approval for the project was
tials. The FERC filing stated that the incorpora- “deficient”. The court ruled that the regulator
tion of the CCS system into the project would must further analyse the impact of Rio Grande
capture at least 90% of its carbon dioxide (CO2) LNG and another proposed Brownsville plant
emissions. NextDecade had previously said that – Texas LNG – on climate change and local
it was working on addressing the remaining 10% communities.
of emissions from the project. The plan to build CCS capacity at Rio
This is not the first change to the design of Rio Grande LNG could further extend the timeline
Grande LNG. NextDecade said in July 2020 that for the project.™

Week 47 25•November•2021 www. NEWSBASE .com P11