Corpus Christi LNG train 1 gets OK for fuel gas

The US Federal Energy Regulatory Commission (FERC) today authorized Cheniere Energy to introduce fuel gas to test the first liquefaction train at its Corpus Christi LNG export terminal in Texas.

The Corpus Christi facility could export its first test cargo in late December to early January, based on an Argus analysis of the start-up schedules for the first four liquefaction trains Cheniere built at its Sabine Pass LNG export terminal in Louisiana.

Cheniere likely would start liquefying gas at Corpus Christi train 1 in early September and take over operations of the unit from contractor Bechtel in January or February next year after commissioning is complete, according to the analysis.

The fuel gas system does not produce LNG, but uses gas to operate the liquefaction train. Cheniere will need to file a separate request to FERC to introduce feed gas and refrigerants to start liquefying gas.

Houston-based Cheniere told Argus today that the first liquefaction train at Corpus Christi is on track to start long-term operations in the first half of 2019 after completing commissioning activities, but it did not elaborate.

Corpus Christi likely would be the fourth major LNG export terminal to come on line in the contiguous US, as Georgia's Elba Island LNG terminal is scheduled to start exporting in the third quarter. Sabine Pass came on line in February 2016 and Maryland's Cove Point terminal in March this year.

Cheniere is building three trains at Corpus Christi, with train 2 scheduled to start operating in the second half of 2019 and train 3 in 2023. The fifth train being completed at Sabine Pass likely would export its first test cargo later this year and start long-term operations by early next year.

Each Cheniere train has baseload capacity of 4.5mn t/yr, equivalent to about 620mn cf/d of gas, and peak capacity of 5mn t/yr.

Long-term contracts that financed Corpus Christi train 1 are scheduled to start in the first half of 2019. Spain's Endesa has 20-year deals for a combined 2.25mn t/yr when train 1 starts long-term contractual operations and Indonesia's Pertamina has a 20-year contract for 0.76mn t/yr. Each company will pay Cheniere a take-or-pay fee of $3.50/mmBtu for all its respective capacity, whether it takes LNG or not.

If one of those customers wants LNG it would pay an additional fee of 115pc of the Nymex Henry Hub monthly settlement price for the month in which a cargo is loaded.