Cheniere Takes FID on Corpus Christi Train 3 [Updated]
Cheniere Energy said May 22 its board of directors had taken a positive final investment decision (FID) on Train 3 at the company’s Corpus Christi Liquefaction (CCL) project in Texas.
With positive FID – the first on new liquefaction capacity in the US since 2015 – Cheniere will immediately issue a full notice to proceed to Bechtel Oil, Gas and Chemicals, which holds the EPC contract for the 4.5mn metric tons/year third train. Trains 1 and 2, also rated at 4.5mn mt/yr, have been under construction by Bechtel since 2015.
“Moving forward with the construction of Train 3 at Corpus Christi reinforces our position as the leader in US LNG,” Cheniere CEO Jack Fusco said. “We continue to see significant tailwinds in the global LNG market and look forward to delivering additional growth and value to shareholders.”
In a related development, the US Federal Energy Regulatory Commission, on May 23, authorised Cheniere Corpus Christi Pipeline to put into service the 2.25bn ft3/day pipeline that will deliver feed and fuel gas to the CCL project. Trains 1 and 2 at CCL are expected to be placed into service later this year.
Cheniere’s wholly owned subsidiary, Cheniere Corpus Christi Holdings, closed on its previously announced amended credit facilities on May 22, and total commitments under the credit facilities have been increased to $6.1bn. The amended credit facilities will be used to fund a portion of the costs of developing, constructing, and placing into service Trains 1, 2, and 3.
The remaining costs of the CCL Project are expected to be funded by Cheniere under its amended Equity Contribution Agreement with Corpus Christi Holdings, and from cash flows generated by Trains 1 and 2 after they are placed in service.