January 28, 2005
Cheniere moves ahead on massive LNG terminal
Cheniere Energy, Inc. (AMEX:LNG) announced yesterday that its Creole Trail LNG L.P. and Cheniere Creole Trail Pipeline Company have initiated the process to apply to the Federal Energy Regulatory Commission (FERC) for permits to build and operate the Creole Trail Liquefied Natural Gas (LNG) terminal and associated pipeline in Cameron Parish, Louisiana.
The proposed $900 million LNG receiving terminal is planned to be North America's largest. With 3.3 billion cubic feet per day (Bcf/d) of initial processing capacity and is planned to be operational in 2009. The entire permitting process is expected to take 12-18 months.
The Creole Trail LNG receiving terminal will be equipped with two unloading docks capable of handling up to 250,000 cubic meter vessels, four 160,000 cubic meter tanks with LNG storage capacity of 13.5 Bcf equivalent and the ability to process 3.3 Bcf/d of natural gas.
The proposed Creole Trail Pipeline will have an initial design capacity of 3.3 Bcf/d. It will originate at the LNG Terminal and extend approximately 118 miles north/northeasterly through Cameron, Calcasieu, Beauregard, Allen, Jefferson Davis and Acadia Parishes where it will terminate near Rayne, Louisiana. It will be designed with potential interconnections to over 12 Bcf/d of interstate and intrastate pipelines in southwest Louisiana.
Cheniere Energy Chairman & CEO Charif Souki said, "Creole Trail LNG is the fourth Gulf Coast LNG receiving terminal project we are launching to achieve our goal of providing a critical solution to our entire nation's need for access to the world's abundant supplies of clean burning natural gas. We appreciate Governor Kathleen Babineaux-Blanco's support in Louisiana. Moreover we thank her for her commitment and her leadership in ensuring we have safe and environmentally responsible sites to supply her state and our nation's energy needs."
Souki continued, "The residents of Cameron Parish, its leaders, civic organizations and Louisiana's State and Federal representatives spoke loudly in their support of our Sabine Pass LNG receiving terminal as they gave us the opportunity to earn their trust and welcomed us into their community. As we embark together on the Creole Trail LNG receiving terminal and pipeline, we are honored to have their support. We are committed to being a strong corporate citizen."
Keith Meyer, president of Cheniere LNG, Inc. a wholly owned subsidiary of Cheniere Energy, Inc. and the General Partner of Creole Trail LNG L.P. said, "Our two projects in Louisiana will support economic development in the state and will create and help to preserve jobs there and in the nation as a whole as we will be able to deliver natural gas to Midwest, Southeast and Northeast markets. Each project will create over 600 jobs during construction and over sixty permanent direct jobs."
Two of Cheniere's other projects, Freeport LNG Development L.P. in which it now holds a 30 percent limited partner interest, and its 100 percent owned Sabine Pass LNG L.P., were among the first new terminals to receive their permits from FERC. Freeport LNG Development L.P. announced it started construction last week and Cheniere expects to break ground at Sabine Pass in late March; both are slated to begin operations in early 2008. Cheniere's third project, Corpus Christi LNG, received its Draft Environmental Impact Statement in November 2004. FERC approval is anticipated this spring, and construction is expected to begin during the third quarter of 2005.