American Oil and Gas Reporter - October 2017 - 30

Industry In Motion

U.S. LNG Export Volumes
On Steep Growth Trajectory
As New Facilities Enter Service
By Tim Beims
HOUSTON-The nation's transition
from a net importer of natural gas to a
net exporter is marked by the emergence
of U.S. liquefied natural gas exports.
Cheniere Energy's Sabine Pass facility
in Cameron Parish, La., became the first
lower-48 operating LNG export facility
last year when it commenced operations
on the first of six planned liquefaction
trains.
Cheniere Energy reports that by Aug.
1, the facility already had shipped 175
U.S. LNG cargoes to 25 nations across
the globe, representing 620 trillion Btus
(633 billion cubic feet). Almost half of
the Sabine Pass cargoes were shipped to
Latin America, followed by Asia, the
Middle East and Europe.
Each of the six trains at Sabine Pass
have a liquefaction capacity of 4.5 million
tons per annum (mtpa). The first train
became operational in February 2016,
followed by the second train in September.
In total, Cheniere says, it shipped 187
Bcf in 2016 from Sabine Pass. The third
train came on line in March, and the

company announced in late July that the
fourth train had produced its first commissioning cargo, with "substantial completion" of the unit's construction expected
by October. Combined, the four trains'
send-out capacity will be 18 mtpa (2.6
Bcf/d), making Sabine Pass the largest
single delivery point for U.S. natural gas
supplies.
Construction on the fifth train was 35
percent complete by early August, according to Cheniere, with a planned 2019
startup date (the sixth train is fully permitted and in the process of being commercialized). When operational, the fifth
train will increase total liquefaction capacity to 22.5 mtpa (3.3 Bcf/d). According
to the company, 19.75 (88 percent) of
the 22.5 mtpa nominal LNG production
capacity has been contracted to thirdparty customers on a long-term basis
under sale and purchase agreements.
Foundation customers include BG Group,
Gas Natural Fenosa, Korea Gas Corp.,
GAIL (India) Ltd., Total and Centrica.
In South Texas, meanwhile, Cheniere
reports that the first two trains at its
Corpus Christi export terminal on the La

The first liquefaction train at the first lower-48 operating LNG export facility-Cheniere
Energy's Sabine Pass terminal in Louisiana-came on stream early last year. By the end
of July, Sabine Pass had shipped 175 LNG cargoes to 25 nations around the globe, representing 633 billion cubic feet of U.S. natural gas. Almost half of the Sabine Pass cargoes were shipped to destinations in Latin America, followed by Asia, the Middle East
and Europe.

30 THE AMERICAN OIL & GAS REPORTER

Quinta Channel were 44 percent complete
as of early August and on schedule to
begin service in 2018. The Corpus Christi
project is designed for five trains with an
expected aggregate nominal production
capacity as great as 22.5 mtpa. The facility
is being constructed in three stages. The
first stage includes the first two trains,
followed by the third train in a second
construction stage, and the last two trains
in a third stage.
For the first two trains, 7.62 of the 9.0
mtpa (1.3 Bcf/d) production capacity has
been contracted on a long-term basis to
third-party customers that include Pertamina, Endesa, Iberdrola, GasNatural
Fenosa, Woodside Petroleum and Électricité de France, Cheniere reports.
New Demand Sector
Since U.S. LNG export terminals are
contracted with LNG buyers under longterm (typically 20-year) purchase agreements, LNG exports represent a stable
and growing new demand sector for domestic natural gas supplies.
Corey Grindal, Cheniere's senior vice
president of gas supply, pointed out at an
analyst's day conference that the seven
trains now complete or under construction-the first five at Sabine Pass and the
first two at Corpus Christi-will require
nearly 5 Bcf/d in supply. On an annualized
basis, that is about 1.8 trillion cubic feet
in new consumption. For comparison,
that is several times the size of the total
U.S. natural gas vehicle fuels market in
2016, according to statistics from the
U.S. Energy Information Administration.
"By 2020, we will have two more
trains under construction, making it nine
total trains, but just the seven that will be
in operation by 2020 means we will have
to procure (the equivalent of) almost 7
percent of all the gas produced in the
United States in 2017 to meet our contractual commitments," he observed.
As a major buyer of U.S. natural gas,
Cheniere has secured purchasing arrange-

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