The next train of the 11.45mn t/yr stage 3 expansion at Cheniere's Corpus Christi LNG export terminal could begin commercial service as soon as 27 March, chief executive Jack Fusco said today.
The fifth train in the seven-train expansion began producing LNG in late February. It likely will be operational — the point at which deliveries to long-term customers begin — in the next two days, Fusco said at the CERAWeek by S&P Global conference in Houston, Texas.
The stage 3 expansion adds to the 17.4mn t/yr Corpus Christi facility in south Texas. Cheniere has been bringing the project on line ahead of schedule since last year, but Fusco cautioned there are limits to how much Cheniere can fill the natural-gas supply crunch created by the effective closure of the strait of Hormuz. The company, which also operates the 33mn t/yr Sabine Pass terminal in Louisiana, has been running at maximum capacity for the last five years, he said. This leaves little room for additional cargoes, but the company is reviewing it maintenance schedule to potentially send more LNG to the global market.
Damage to Qatar's 77mn t/yr Ras Laffan export terminal and volatility in LNG prices since the US-Iran war began on 28 February is a threat to long-term demand growth, Fusco said, calling QatarEnergy "the gold standard" for the industry that made long-term LNG contracting a reality.
"We need gas prices to be stable, to be affordable, and we'll let demand grow," Fusco said.
Fusco also reaffirmed Cheniere's strategy to supply long-term contracts rather than increase its spot exposure as it plans to add another 20mn t/yr to Sabine Pass and 24mn t/yr to Corpus Christi.
"We're not going to change our business model," Fusco said. "It's been successful for us over the last decade."
