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Cheniere to sell Corpus Christi LNG under long-term contracts

Posted on September 19, 2012 at 7:01 am
by Bloomberg

Cheniere Energy Inc. (LNG) will sell as much as 90 percent of the output from its liquefied natural gas project in Corpus Christi, Texas, under long-term contracts.

The planned Corpus Christi site will produce 13 million to 15 million metric tons a year of LNG, Charif Souki, chief executive officer at Houston-based Cheniere, said today in an interview at a natural gas conference in Tokyo.

The company plans to follow the contracting model established at its Sabine Pass terminal in Louisiana, Souki said. Sixteen million tons of LNG from Sabine Pass, from a total output of 18 million tons, will be sold on long-term contracts of as long as 20 years, with the rest to be offered on the spot market, he said.

“Those are the volumes that we’re not sure we can produce year after year so these will remain in the spot market,” he said. The first spot cargoes from Sabine Pass will reach the market in late 2015 or early 2016, he said.

Cheniere’s Sabine Pass site is the first in the contiguous U.S. to be able to export LNG. The project is expected to cost about $5.6 billion.

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India: GAIL to Finalize USD 12 Billion Gas Deal

State-run gas company GAIL is just steps away from signing a 20-year contract for shipping two million tonnes of LNG a year from US east coast, The Times of India said, citing sources close to the development.

Value of this contract would be approximately $12 billion.

GAIL executives were in the US last week in order to give final touches to the deal, the newspaper said.

In December 2011, GAIL inked a $20 billion contract with Sabine Pass Liquefaction for 3.5 million tonnes of LNG annually.

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USA: Sierra Club Opposes Cameron LNG Export Plans

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The Sierra Club filed a formal protest to the U.S. Department of Energy (DOE) on Tuesday, challenging a proposal to export billions of cubic feet of domestic natural gas from a facility on Lake Charles in Cameron Parish, LA.

The Sierra Club’s protest challenges natural gas companies’ efforts to secure liquefied natural gas (LNG) export licenses without acknowledging its damaging effects. DOE is currently studying the effects of exporting as much as a fifth of the domestic gas supply, and the Sierra Club calls for similar studies of the public health and environmental damage caused by increased fracking.

The Sierra Club’s challenge contends that the Cameron export proposal would lead to increased air and water pollution in Louisiana and Texas and raise domestic natural gas prices. The filing calls for a full Environmental Impact Statement to study the extent of this proposed facility’s environmental damages before DOE makes any final decisions. Weighing these threats is particularly important because the oil and gas industry currently exploits numerous loopholes and exceptions in federal safeguards, putting the health and safety of Americans at risk.

This filing is the fifth protest the Sierra Club has brought before DOE and other regulatory bodies, opposing LNG export facilities. The other challenges were filed against Cove Point, MD, Sabine Pass, LA, Coos Bay, OR, and Freeport, TX.

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