Corpus Christi LNG Terminal

From Global Energy Monitor
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Corpus Christi LNG Terminal is an export LNG terminal in Corpus Christi, Texas, United States. A Stage 3 expansion of the terminal is planned.

Location

The undated satellite photo below shows the LNG export terminal site located on the La Quinta Channel in San Patricio County. It is anticipated the terminal would be primarily supplied by reserves from the Eagle Ford Shale, located approximately sixty miles northwest of Corpus Christi, Texas.[1]

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Project Details, Stage 1

Project Details, Train 1

  • Owner: Cheniere Energy
  • Location: Corpus Christi, Texas, United States
  • Coordinates: 27.913542, -97.286562 (exact)
  • Capacity: 5 mtpa[2]
  • Status: Operating
  • Type: Export
  • Trains: 1
  • Start Year: 2018[3]
  • Financing: A loan of US$8.4 billion was provided for construction of Trains 1 and 2 by a consortium comprising Korea Development Bank and 30 international private banks[4]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Project Details, Train 2

  • Owner: Cheniere Energy
  • Location: Corpus Christi, Texas, United States
  • Coordinates: 27.913542, -97.286562 (exact)
  • Capacity: 5 mtpa[2]
  • Status: Operating[5]
  • Type: Export
  • Trains: 1
  • Start Year: 2019[5]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Project Details, Stage 2

  • Owner: Cheniere Energy
  • Location: Corpus Christi, Texas, United States
  • Coordinates: 30.366324, -81.626135 (exact)
  • Capacity: 5 mtpa[2]
  • Status: Operating[6]
  • Type: Export
  • Trains: 1[7]
  • Start Year: 2021[5]
  • Financing: A loan of US$6.1 billion was provided for construction by a consortium comprising Korea Development Bank, 40 international private banks and undisclosed others[4]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Project Details, Stage 3

  • Owner: Cheniere Energy
  • Location: Corpus Christi, Texas, United States
  • Coordinates: 30.366324, -81.626135 (exact)
  • Capacity: 11.5 mtpa (1.64 mtpa per train)[8]
  • Status: Proposed, pre-FID[9]
  • Type: Export[8]
  • Trains: 7[3]
  • Start Year: 2024[9]

Background, Stage 1

Corpus Christi LNG was originally planned as an LNG Import Terminal and 23 miles of 48-inch pipeline, approved by FERC in April 2005.[10]

On December 16, 2011, Cheniere Energy, Inc. announced that its wholly owned subsidiary, Corpus Christi Liquefaction, LLC, was developing an LNG export terminal at the site, which was previously permitted for a regasification terminal. The proposed liquefaction project (Corpus Christi Project) is being designed for up to 13.5 million tonnes per annum (mtpa). Cheniere has initiated FERC's National Environmental Policy Act (NEPA) pre-filing review. The company plans for the first "trains," or facilities where gas will be liquefied, to be in operation in 2018.[1]

On March 25, 2013, UK energy company Centrica agreed to pay £10 billion (US$15 billion) over 20 years for 89 billion cubic feet of gas annually from Cheniere. The first deliveries, by tanker, are expected in 2018.[11]

Background, Stage 2

In February 2021 it was reported that Cheniere Energy had filed a request with the US Federal Energy Regulatory Commission (FERC) to place the third train at the Corpus Christi terminal project into commercial operation.[12] In March 2021, Cheniere disclosed that it had commissioned Train 3.[6]

Stage 2 Timeline

As of February 2020, the timeline had been updated to:[7]

  • August 31, 2012 – Filed FERC Application
  • October 8, 2014 – Issuance of Environmental Impact Statement
  • December 30, 2014 – Issuance of FERC order
  • December 31, 2014 – File Initial Implementation Plan
  • May 13, 2015 – Commence Construction on Trains 1 - 2
  • March 1, 2019 – Train 1 In Service
  • August 2019 – Train 2 In Service
  • 2021 – Train 3 Expected In Service

Background, Stage 3

Cheniere is also developing an expansion which would feature up to seven midscale Trains. The company expects to commence construction of the Corpus Christi Stage 3 project after entering into an engineering, procurement, and construction contract and additional commercial agreements, and obtaining adequate financing.[6]

In June 2018, an application had been filed with FERC to site, construct and operate the Midsize LNG Facilities. On March 29, 2019, FERC issued an Environmental Assessment for the project. Stage 3 received its FERC Order in November 2019. The first phase of the Stage 3 Project is expected to be brought online in 2024.[9]

In February 2020, the U.S. Department of Energy issued an approval for the Corpus Christi expansion project to ship LNG to nations that aren't part of free trade agreements, such as Japan, South Korea and India.[13]

In April 2020, the energy and shipping brokerage Poten & Partners disclosed that the final investment decision (FID) for the terminal expansion had been delayed beyond the original FID timing of 2022. It cited COVID-19, plunging demand and the crash in oil prices as the reasons for the delay.[14]

In June 2021, Cheniere made a sale and purchase agreement with the French utility Engie for 0.4-1.1 mtpa over 11 years, although it was not specified whether this volume would come from Corpus Christi Stage 3.[15]

By July 2021, Cheniere had made three, 15-year gas supply deals tied to the proposed Corpus Christi Stage 3 expansion with US gas producers Apache and EOG Resources and the Canadian oil and gas producer Tourmaline. Combined, the three integrated product marketing agreements represent a total of 2.55 mtpa of the facility's expected capacity of 10 mtpa.[16] Cheniere also reached a 6-year gas supply deal with New Fortress affiliate NFE North Trading for 0.6-1 mtpa to begin that year from the Corpus Christi facility.[17]

In September 2021, Cheniere announced that it expected to take a FID in 2022.[18] Anatol Feygin, Cheniere's chief commercial officer, expressed confidence that, due to soaring Asian spot LNG prices, potential customers would be more likely to enter into cheaper long-term contracts which Cheniere was offering. For the company to advance the Corpus Christi Stage 3 project, it believes it needs to reach a threshold of 4 mtpa in secured offtake agreements out of the expansion project's total capacity of 10 mtpa.[19]

In October 2021, a subsidiary of China's ENN Natural Gas signed a 13-year sales and purchase agreement with Cheniere Energy for 0.9 mtpa of LNG to be delivered on a free-on-board basis from July 2022, with the purchase price indexed to the US Henry Hub price. It was unclear from the companies' statements if the LNG supply would derive from Corpus Christi Stage 3, though Cheniere CEO Jack Fusco said the agreement marked another milestone in its commercial efforts "in anticipation of an FID of Corpus Christi Stage 3, which we expect will occur next year".[20] A further 13-year sales and purchase agreement between Swiss-based commodities trader Glencore and Cheniere Energy for 0.8 mtpa of LNG was announced in late October.[21] Again it was not specified if the deal would involve LNG being supplied from Corpus Christi Stage 3, though Cheniere's Fusco commented that the agreement "further builds upon Cheniere's commercial momentum, marking another important milestone in contracting our LNG capacity ahead of an FID of Corpus Christi Stage 3, which we expect to occur next year."[22]

In November 2021, Cheniere announced that it had entered a binding sales agreement with Sinochem Group Co., Ltd. for an initial volume of 0.9 mtpa which would increase to 1.8 mtpa over the course of the 17.5-year agreement, although it was not specified whether some of this volume would come from Corpus Christi Stage 3.[23] Cheniere also announced that it had entered a binding 20-year sales agreement with Foran Energy Group Co., Ltd., under which Foran will purchase 0.3 mtpa beginning in 2023, although again it was not specified whether some of this volume would come from Corpus Christi Stage 3.[24]

Articles and resources

References

  1. 1.0 1.1 "Cheniere plans Corpus Christi export terminal," LNG World News, Dec 16th, 2011.
  2. 2.0 2.1 2.2 "GIIGNL 2021 Annual Report”, page 41, GIIGNL, accessed May 4, 2021.
  3. 3.0 3.1 2020 World LNG Report, page 102, International Gas Union, April 27, 2020
  4. 4.0 4.1 "Corpus Christi LNG - Trains 1 and 2," IJGlobal, accessed May 25, 2020
  5. 5.0 5.1 5.2 Cheniere starts LNG production from Corpus Christi Train 2 LNG World News, June 14, 2019
  6. 6.0 6.1 6.2 Adnan Bajic, Cheniere commissions Train 3 at Corpus Christi LNG, Offshore Energy, Mar. 29, 2021
  7. 7.0 7.1 "Project Schedule," Cheniere Energy, updated June, 2019
  8. 8.0 8.1 U.S. Liquefaction Capacity, Energy Information Administration, November 3, 2020
  9. 9.0 9.1 9.2 Project Schedule Cheniere, accessed April 24, 2020
  10. "North American LNG Import Terminals: Status of Proposed and Existing Facilities," Natural Gas Intelligence, accessed April 2012.
  11. Fiona Harvey, "US shale gas to heat British homes within five years," guardian.co.uk, March 25, 2013.
  12. Two LNG export projects move forward in the United States, Enerdata, Feb. 15, 2021
  13. Four LNG projects along Texas coast land non-FTA export permits Houston Chronicle, Feb. 11, 2020
  14. John Snyder FID’s delayed by global uncertainty Riviera Maritime Media, Apr. 24, 2020
  15. Weber, Harry (2021-11-11). "Cheniere to supply LNG from Texas export facility under new deal with France's Engie". www.spglobal.com. Retrieved 2021-12-03.
  16. Harry Weber, Cheniere gas supply deal with Canada's Tourmaline lifts LNG expansion in Texas, S&P Global, Jul. 15, 2021
  17. Weber, Harry. Cheniere reached LNG supply deal with New Fortress affiliate over summer: DOE. S&P Global. December 14, 2021.
  18. Caroline Evans, Cheniere Eyes 2022 to Sanction Corpus Christi LNG Stage 3, Natural Gas Intelligence, Sep. 10, 2021
  19. Harry Weber, GASTECH 2021: Platts JKM surge said to be making spot LNG buyers rethink strategy, S&P Global, Sep. 22, 2021
  20. Harry Weber, China's ENN signs 13-year contract with Cheniere for 900,000 mt/year LNG, S&P Global, Oct. 11, 2021
  21. Marcy de Luna, Cheniere, Glencore reach 13-year LNG deal, Houston Chronicle, Oct. 25, 2021
  22. Cheniere and Glencore Sign Long-Term LNG Sale and Purchase Agreement, Cheniere Energy press release, Oct. 25, 2021
  23. "Cheniere and Sinochem Group Sign Long-Term LNG Sale and Purchase Agreement," Cheniere, November 5, 2021.
  24. "Cheniere and Foran Energy Group Sign Long-Term LNG Sale and Purchase Agreement," Cheniere, November 24, 2021.

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