Page 9 - GLNG Week 29 2021

GLNG COMMENTARY GLNG

The deal takes Cheniere
a step closer to an FID
on Corpus Christi Stage
III.

marketing] agreement with Canada’s largest Christi Stage III expansion project.
natural gas producer demonstrates the breadth As a result, it is proposing to build up to seven
of Cheniere’s natural gas resource supply and mid-scale liquefaction trains, with a combined
the range of our commercial options,” stated capacity of around 10mn tpy – though Fusco
Cheniere’s president and CEO, Jack Fusco. “This earlier suggested it could reach up to 11mn tpy.
commercial agreement is expected to support All of the regulatory approvals for the project are
our shovel-ready Corpus Christi Stage III pro- in hand, and the supply deal with Tourmaline
ject while enabling Canadian natural gas to takes Cheniere a step closer to a final investment
reach international LNG markets. Additionally, decision (FID).
it reinforces Cheniere’s track record of creating However, comments made by Fusco not long
collaborative, innovative solutions to meet cus- ago suggest that while the company is moving
tomers’ needs and supports Cheniere’s growth.” towards FID, it has other near-term priorities. Debottlenecking
Tourmaline, meanwhile, noted that the gas it On Cheniere’s first-quarter earnings call in May,
will supply to Cheniere will be low-emissions, Fusco said debottlenecking and maintenance and maintenance
in line with a broader push by upstream players optimisations efforts at the company’s existing optimisations
and LNG producers alike to demonstrate their trains had added 7mn tpy of LNG – what he
decarbonisation credentials. described as a “virtual train” – to its portfolio. efforts at the
Tourmaline’s president and CEO, Mike Rose, “First and foremost is making sure that we
also described the deal as the “next important secure the existing nine trains worth of LNG company’s
step in Tourmaline Oil Corp’s evolving mar- before we go off and build Stage III, another
ket diversification strategy”. Indeed, with LNG 11mn tonnes,” Fusco said at the time. He also existing trains
prices currently strong in Asia, gas can be sold said, however, that Cheniere was “100% focused had added 7mn
there at a premium to North American markets, on making sure that Stage III gets commercial-
though this does not mean anything regarding ised as soon as possible”. tpy of LNG.
how prices will behave from 2023 onwards. The company previously pushed the FID back
from 2020 amid the first wave of the coronavirus
Cheniere’s next steps (COVID-19) pandemic and the resulting down-
There are currently three liquefaction trains in turn in the LNG market. Conditions have since
operation at Corpus Christi, with a combined improved for LNG producers, but Cheniere
capacity of 15mn tpy. Cheniere wants to move executives have previously said that they will not
away from the 5mn tpy trains it has developed at proceed with Stage III until they have sufficient
both Corpus Christi and its first LNG export ter- commercial agreements in place to underpin
minal, Sabine Pass in Louisiana, for the Corpus the project.™

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