Cheniere updates status of liquefaction projects

Through Cheniere Partners, Cheniere Energy is developing up to six natural gas liquefaction Trains at the Sabine Pass LNG terminal adjacent to the existing regasification facilities (the SPL Project). Trains 1 through 4 are operational, Train 5 is undergoing commissioning, and Train 6 is being commercialised and has all necessary regulatory approvals in place.

The company is also developing three Trains near Corpus Christi, Texas (the CCL Project). Train 1 is undergoing commissioning, and Trains 2 and 3 are under construction.

“Our Trains are expected to have a nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, potential overdesign, and debottlenecking opportunities, of approximately 4.5 mtpa of LNG per Train, and average run rate adjusted nominal production capacity of approximately 4.4 to 4.9 mtpa of LNG per Train,” the company said in its third quarter statement.

Additionally, the company is developing up to seven midscale liquefaction Trains adjacent to the CCL Project (Corpus Christi Stage 3), each with an expected nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, potential over-design, and debottlenecking opportunities, of approximately 1.4 Mtpa of LNG. The total expected nominal production capacity of the seven midscale Trains is approximately 9.5 Mtpa of LNG. In June 2018, we filed an application with FERC to site, construct, and operate Corpus Christi Stage 3.

In November 2018, Cheniere Energy entered into a 24-year LNG Sale and Purchase Agreement (SPA) with Polish state-owned oil and gas company Polskie Gornictwo Naftowe i Gazownictwo S.A. (PGNiG) for the sale of approximately 1.45 million tonnes per annum (Mtpa) of LNG on a delivered ex-ship basis. Deliveries will commence in 2019, with the full annual quantity commencing in 2023. The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.

In November 2018, Sabine Pass Liquefaction (SPL) entered into an Engineering, Procurement, and Construction (EPC) contract with Bechtel Oil, Gas and Chemicals for Train 6 of the SPL Project. SPL also issued limited notice to proceed to Bechtel to commence early engineering, procurement, and site works.

In September 2018, the company entered into a 15-year LNG SPA with Vitol for the sale of approximately 0.7 Mtpa of LNG beginning in 2018, and in August 2018, it entered into a 25-year LNG SPA with CPC Corporation, Taiwan for the sale of approximately 2 Mtpa of LNG beginning in 2021.

As of October 31, 2018, more than 215 cargoes have been produced, loaded, and exported from the SPL Project year to date. To date, more than 475 cumulative LNG cargoes have been exported from the SPL Project, with deliveries to 29 countries and regions worldwide.

In August 2018, feed gas was introduced to Train 1 of the CCL Project (defined below) as part of the commissioning process. In September 2018, feed gas was introduced to Train 5 of the SPL Project as part of the commissioning process, and first LNG production from Train 5 occurred in October 2018.

For the nine months ended September 30, 2018, Cheniere Energy achieved consolidated adjusted EBITDA of over $2bn and distributable cash flow of approximately $470m.

In September 2018, the company closed the previously announced merger of Cheniere Energy Partners LP Holdings with its wholly owned subsidiary.

For more information visit: www.cheniere.com

12th November 2018