Page 6 - GLNG Week 25 2022

GLNG COMMENTARY GLNG

Cheniere, Venture Global make

LNG progress as Chevron

COMMMENTARY IT has been another busy week for the US LNG from Cheniere’s existing model of 5mn tonne per
industry, which continues to take strides for- year (tpy) liquefaction trains. The company has
ward. On June 22, leading US LNG producer six such trains in operation at Sabine Pass LNG
Cheniere Energy said it had taken a final invest- and three at Corpus Christi. Stage 3, on the other
ment decision (FID) on the Stage 3 expansion of hand, will consist of up to seven ‘midscale’ trains
its Corpus Christi LNG terminal in Texas. with a combined capacity of around 10mn tpy.
On the same day, both Cheniere and another This week, Cheniere issued a full notice to
Gulf Coast LNG producer, Venture Global LNG, proceed to contractor Bechtel Energy, having
announced separate sales and purchase agree- issued a limited notice to proceed earlier this
ments (SPAs) with Chevron. The deals mark the year for preliminary work at the site. Bechtel also
super-major’s entry into the booming trade in built all of Cheniere’s existing trains.
US LNG, giving it a supply of the super-chilled The expansion project is anticipated to enter
fuel to sell overseas amid growing demand. A production by the end of 2025.
day earlier, Venture Global also announced that Cheniere said in the FID announcement that
it had executed two further SPAs with EnBW earlier this month, its Cheniere Corpus Christi
in its first offtake deal with a German company, Holdings (CCH) subsidiary had closed on an
which comes as Germany and Europe more amended and restated $4bn senior secured term
broadly work to phase out Russian natural gas loan due in 2029 and an amended, extended and
imports. upsized $1.5bn working capital facility due in
All of these moves illustrate the strength in 2027. Cheniere has also transferred its equity
demand for US LNG, as well as the role US pro- interests in Corpus Christi Liquefaction Stage
ducers hope to play in ending Europe’s depend- III to CCH, and merged that unit into Corpus
ence on Russia for gas supplies. The FID comes Christi Liquefaction (CCL), a subsidiary of
as no surprise, as Cheniere has been talking up CCH, with CCL continuing as the surviving
Corpus Christi Stage 3 for some time, but it is company.
now expected to be followed by other LNG pro- Borrowings under CCH’s 2029 term loan will
jects on the Gulf Coast being sanctioned, that be used to fund roughly half of the total expected
were previously considered less likely to move cost of building Stage 3, the associated pipeline
forward. expansion and other related infrastructure. The
remaining costs are anticipated to be funded by
Stage 3 Cheniere.
Corpus Christi Stage 3 represents a shift away

P6 www. NEWSBASE .com Week 25 24•June•2022