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    Cheniere sanctions Corpus Christi Stage 3 project

Summary

Expansion will increase Texas export facility's capacity to 25mn mt/yr.

by: Dale Lunan

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Cheniere sanctions Corpus Christi Stage 3 project

US LNG developer Cheniere Energy said June 22 its board of directors had made a positive final investment decision (FID) with respect to the 10mn metric tons/year Corpus Christi Stage 3 (CCL3) liquefaction project in Texas.

At the same time, Cheniere has issued a full notice to proceed to Bechtel Energy to continue construction at CCL3, which began earlier this year under a limited notice to proceed. CCL3 comprises seven mid-scale liquefaction trains that will boost total liquefaction capacity at the Corpus Christi terminal to about 25mn mt/yr.

“Reaching FID on Corpus Christi Stage 3 represents an important milestone for Cheniere as we move forward on this significant growth project, which will strengthen our market-leading LNG infrastructure platform, provide much-needed volumes to the global LNG market by the end of 2025, and create long-term value for our stakeholders,” CEO Jack Fusco said. “CCL Stage 3 is supported by a truly global portfolio of long-term customers and reflects the call for investment in natural gas infrastructure around the world to support environmental priorities and long-term energy security.”

Earlier this month, Cheniere’s wholly-owned subsidiary Cheniere Corpus Christi Holdings (CCH) closed on an amended and restated $4bn senior secured term Loan due in 2029 and on an amended, extended and upsized $1.5bn working capital facility due in 2027.

Cheniere has also contributed its wholly-owned equity interest in CCL3 to CCH and merged CCL3 into CCH subsidiary Corpus Christi Liquefaction (CCL), which will continue as the surviving company. Borrowing by CCH under the 2029 term loan will fund about half the $8bn cost of CCL3, with the balance expected to be funded by Cheniere.