Cheniere Energy Inc. expected two storage tanks at its Sabine Pass LNG export terminal that have been offline for more than a year and a half to be operational by the end of the year if there are no further regulatory delays, the company said Aug. 29.
A mishap that caused a release of gas in January 2018 led to the shutdown of storage tanks 1 and 3. Repairs are now finished, Cheniere spokeswoman Jenna Palfrey said in an email.
The shutdown, while it has not affected Cheniere's ability to liquefy and ship cargoes to meet customer needs, has lowered the Louisiana facility's storage capacity. With all five tanks in operation, the design storage capacity is 17 Bcfe, giving the operator greater optionality and improving utilization during periods of strong demand and routine maintenance.
The company still must satisfy requirements of the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration and the Federal Energy Regulatory Commission, which sought to prevent another leak. Several documents were filed earlier this week with FERC, mostly under seal.
"If there are no additional regulatory delays, Sabine Pass expects both tanks to be operational in the 4Q 2019," Palfrey said. "Both tanks have been repaired, and we are in the process of responding to questions relating to the tanks."
The agencies told Cheniere in a July 9 letter that they would not allow the company to return the two tanks to service until it completed corrective actions that were part of an agreement between the company and the government. Among other things, the agencies said they were waiting for additional testing and examination, procedure modifications and documentation.
Cheniere said at the time that the repair work had complied with plans approved by regulators.
Cheniere operates five liquefaction trains at Sabine Pass and is developing a sixth. Two trains are in operation at its export terminal near Corpus Christi, Texas. At the Texas site, a third train is under construction and a midscale expansion that would involve smaller units has been proposed.
Four more major LNG export terminals are in operation in the US. Two of them — the Freeport LNG Development LP facility in Texas and Kinder Morgan Inc.'s Elba Liquefaction facility in Georgia — are preparing to ship their first cargoes.
Harry Weber is a reporter with S&P Global Platts. S&P Global Market Intelligence and S&P Global Platts are owned by S&P Global Inc.
