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|US Cheniere Energy Signs With UK's BG SPA Of LNG|
|=Agreement was reached for 1st time to export LNG from the terminal in Gulf of Mexico|
Cheniere Energy Partners, L.P. in the US concluded sale and purchase agreement (SPA) of LNG with BG group in the UK. 3.5 million tons per year of LNG will be sold to BG over 20 years, which is produced at Sabine Pass LNG Terminal located in Gulf of Mexico, where Cheniere Energy promoted LNG export project.|
In Gulf of Mexico, Freeport LNG Development, L.P. and Dominion Resources, Inc. has proceeded with LNG export projects, besides Cheniere Energy. However, this is the first time for SPA of LNG to be concluded.
Cheniere Energy, which owns Sabine Pass LNG Terminal, plans to additionally construct four liquefaction trains in the terminal, each of which has capacity up to 4.5 million tons per year, so that it could produce 16-18 million tpy of LNG. First of all, two LNG trains are scheduled to start up in 2015 and the rest of two trains are expected to be in production after 6-9 months' interval respectively. The company is scheduled to make final investment decision (FID) by the end of 2012 and begin construction after receipt of the approval from the US Federal Energy Regulatory Commission (FERC).
In the wake of increase in natural gas production accompanied by technological innovation in the development of shale gas, Cheniere Energy hammered out its plan to start two way service of both exports and imports by additionally equip liquefaction facilities at Sabine Pass Terminal which was originally import terminal. The company has in mind to export LNG by using low-priced gas produced in the US as a feedstock to Asia where it is expected for LNG to be sold at expensive prices.
Cheniere Energy has so far signed memorandum of understanding (MOU) concerning LNG terminal us agreement with six companies such as Spain's Endesa, China's ENN Energy and the US Morgan Stanley. Also Cheniere Energy itself reached a basic agrement with Dominica's Basic Energy for the sales of LNG.
|last modified : Wed 02 Nov, 2011 [10:24]|