Cheniere announces positive FID on Corpus Christi Stage 3 Liquefaction project

Cheniere Energy Inc. announced that its board of directors made a positive final investment decision, or FID, on its LNG Corpus Christi Stage 3 Liquefaction project.

Cheniere issued a full notice to proceed to Bechtel Energy Inc to continue construction on stage 3 of the project, which would add roughly 10 million tonnes per year of nominal production capacity at the Corpus Christi LNG Terminal. Stage 3 construction began earlier this year under a limited notice to proceed, the company said in a June 22 news release.

Cheniere subsidiary Cheniere Corpus Christi Holdings LLC closed on an amended and restated $4 billion senior secured term loan due 2029, which will be used to fund approximately half of the total cost to develop, construct and place Corpus Christi Liquefaction Stage 3 into service. Cheniere will fund the remaining costs of the project.

"[Corpus Christi Liquefaction] Stage 3 is supported by a truly global portfolio of long-term customers and reflects the call for investment in natural gas infrastructure around the world to support environmental priorities and long-term energy security," Cheniere President and CEO Jack Fusco said in a statement.

Cheniere has accumulated a list of long-term deals to support the expansion project, including a 15-year liquefied natural gas supply deal with Equinor ASA from June and a 20-year LNG supply deal with Posco International Corp. from May.

Cheniere Energy subsidiaries Sabine Pass Liquefaction LLC and Cheniere Marketing LLC have each signed a long-term LNG deal with Chevron Corp. subsidiary Chevron U.S.A. Inc., Cheniere said in a separate statement on June 22.

Under the sale and purchase agreement with Sabine Pass LNG, Chevron will purchase approximately 1.0 Mt/y of LNG From Sabine on a free-on-board basis. Deliveries are expected to begin in 2026, hitting the full 1.0 Mt/y level in 2027 and continuing to mid-2042.

The sale and purchase agreement with Cheniere Marketing is subject to Cheniere making a positive financial investment decision to construct additional liquefaction capacity at the Corpus Christi LNG Terminal beyond the seven-train Corpus Christi Stage 3 Project.

Sabine Pass LNG and Chevron also agreed to terms for the early termination of their LNG Terminal Use Agreement in return for a lump sum payment to be made by Chevron to Sabine Pass LNG during the 2022 calendar year, the company added.

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