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Cheniere (LNG) Gets Nod From FERC for Train 3 of CCL Project

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Cheniere Energy, Inc.’s (LNG - Free Report) proposal to begin commercial operations of its third liquefaction train at its Corpus Christi liquefied natural gas export plant in Texas was recently authorized by the Federal Energy Regulatory Commission (FERC).

With the arrival of the new train, Cheniere Energy’s Corpus Christi Liquefaction Project (CCL) now has three trains functioning.The Train 3, which has the capacity to produce 0.66 billion cubic feet per day (bcfd) of natural gas, has been running for months in test mode. As more units under construction come online, the U.S. LNG export potential is projected to increase to 11.9 bcfd in 2022, up from the current level of 10.5 bcfd.

Train 3 with a capacity of 5 million tonnes per annum (Mtpa) was sanctioned in 2018 by Cheniere Energy. In 2019, the company expected the train to enter service in the first half of 2021 but in the last reported quarter, it preponed its timeline to complete the third train in the first quarter of 2021 only.

Apart from the Corpus Christi Project, Cheniere Energy’s Sabine Pass is North America’s first large-scale liquefied gas export facility. The company intends to construct up to six trains in all at Sabine Pass with each train expected to have a capacity worth 4.5 Mtpa. Notably, the run-rate of LNG production is projected within 4.7-5 Mtpa.

While Trains 1 to 5 are functional, Train 6 is currently under construction with its completion estimated within the second half of 2022. The terminal also has a regasification capacity of approximately 4 billion cubic feet per day with almost 50% reserved for Chevron (CVX - Free Report) and TOTAL under long-term agreements.

Further, Cheniere Energy intends to develop seven midscale liquefaction trains adjacent to the CCL Project. Total production capacities of these trains are expected to be roughly 10 Mtpa.

About the Company

Cheniere Energy is primarily engaged in businesses related to liquefied natural gas (or LNG) through its two business segments, namely LNG terminal, and LNG and natural gas marketing. The company through its controlling interest in Cheniere Energy Partners L.P. (CQP - Free Report) owns and operates the Sabine Pass LNG terminal (North America’s first large-scale liquefied gas export facility) in Louisiana.

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