Cheniere Energy’s Port of Corpus Christi LNG Plant Will Cost $12 Billion

A Final Investment Decision Is Expected By the End of 2014
Cheniere's Corpus Christi Liquefaction Project

Cheniere’s Corpus Christi Liquefaction Project | Click to Enlarge

Cheniere Energy is closer to making a decision on final investment in its Corpus Christi Liquefaction project.

Cheniere received a turnkey construction commitment priced at $800/tonne of liquefaction. The engineering and construction company Bechtel submitted the contract in September.

Cheniere has plans for up to six trains with 4.5 mtpa capacity each in Corpus Christi, but initial plans call for three trains with capacity of 13.5 mtpa (~1.8 Bcf/d). [Read more…]

Freeport LNG Looking For Financing – Planning Gas Exports

Alos Seeking Approval To Expand From 1.4 To 2.8 Bcfd
Freeport TX LNG

Freeport, TX | Click to Enlarge

Freeport LNG is looking to raise more than $7.5 billion to begin construction at its proposed LNG export facility in Freeport, TX.

The Energy Department has approved 1.4 Bcfd in exports at the site and the company is seeking approval for an additional 1.4 Bcfd. The facility still needs FERC approval and expects to know more in 2014. If everything goes as planned, one export train a year will come online starting in 2017. [Read more…]

Eagle Ford Crude to Canada? – Valero Gets Approval

US Department of Commerce Approved a 1-Year Export Permit to Eastern Canada
Valero Quebec City Refinery

Quebec City, Canada

V alero received US Department of Commerce approval to ship Eagle Ford crude oil to a refinery in Quebec City, Canada. A shipment has yet to set sail, but the company expects it could save $1-2 per barrel by utilizing Gulf Coast (Eagle Ford) volumes versus crude shipped across the Atlantic. [Read more…]

Eagle Ford Natural Gas is Headed for Mexico – Major Pipeline Expansions Planned

U.S. supplies almost 1.5 Bcf/d to Mexico and Eagle Ford growth could mean much more is on its way
Gas Pipeline Photo

Gas Pipeline | Click to Enlarge

Eagle Ford natural gas pipeline expansions are headed for Mexico. An $8 billion expansion of Mexican natural gas infrastructure is being pushed forward. The early focus is on industrial cities in the northern half of the country where a $3 billion expansion is planned.

“Mexico has a unique opportunity, we have access to the world’s cheapest gas,” Mexican Energy Minister Jordy Herrera said of the U.S. supply in announcing the new pipeline plans earlier this year. “This is competitiveness for the industry of our country.”

U.S. companies are lining up to help supply and construct the proposed Mexican infrastructure. Expect to see companies like Kinder Morgan reverse the direction of some of its current natural gas flows and expand pipelines into Mexico. The Eagle Ford currently produces almost 3 bcf/d, but that number could almost triple over the next five years. That’s a lot of natural gas to be absorbed in South Texas. Actually, its much more than the region can absorb. If 5+ bcf/d of additional supply comes online, the natural gas will need a market. That market will either come from Mexico or from across the globe shipped as LNG. Both pipelines and liquefaction facilities come with big price tags, but don’t expect PEMEX (Mexico’s national oil company) to wait around. The country needs natural gas and the Eagle Ford is positioned well to answer.

Read the full story detailing Mexico’s plans at chron.com

Exporting Eagle Ford Gas is One Step Closer

Cheniere Energy announced the week before Christmas that it has plans for a Texas natural gas export facility near Corpus Christi and that it reached a supply agreement with an Indian company for gas exported from the Sabine Pass export terminal in Louisiana.

Through its Corpus Christi Liquefaction subsidiary, the company began the regulatory process for getting approval to add a 2 Bcf/d export facility in the La Quinta Channel on the Northeast side of Corpus Christi Bay in San Patricio County, TX. An export facility where operators can lock in higher gas prices for extended periods would expand commercial development of the Eagle Ford further into the dry gas window.

Cheniere Energy also added a supply agreement at its Sabine Pass facility. The company and GAIL Limited have agreed to a 20 year deal where the Indian company will purchase 3.5 mtpa or close to 500 mmcfd of gas at a price indexed to Henry Hub. The contract begins with the first commercial delivery.

GAIL signed an Eagle Ford JV agreement with Carrizo in September of 2011 and the deal with Cheniere is a big step in ensuring the company realizes better natural gas prices.  [Read more…]

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