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Cheniere gets short-term DOE approval to export LNG from Corpus Christi

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Cheniere gets short-term DOE approval to export LNG from Corpus Christi

The U.S. Department of Energy granted short-term approval for exports from Cheniere Energy Inc.'s liquefied natural gas plant in Texas to nations that do not have a free trade agreement with the U.S., as the facility nears shipping its first cargo.

The DOE's authorization, announced Nov. 2, applies to initial commissioning volumes and short-term contracts associated with the Corpus Christi LNG plant at a volume of up to 2.1 Bcf/d and lasting two years. The term will become effective on the date of the first export or Dec. 31, whichever comes first. The approval is separate from Corpus Christi LNG's long-term LNG export authorizations.

The DOE issued a similar order in September authorizing short-term exports to countries that do have a free trade agreement with the U.S.

The most recent DOE decision followed an Oct. 30 order from the Federal Energy Regulatory Commission clearing a Cheniere subsidiary to export commissioning cargoes from first train at the Corpus Christi plant. FERC also approved requests for authorizations to start commissioning a storage tank, a jetty and related systems.

Train 1 will add 4.5 million tonnes per annum, or about 0.7 Bcf/d of gas, to total U.S. LNG export capacity.

Cheniere has said it expects the first cargo at Corpus Christi to be shipped by the end of 2018. It could happen within weeks, with the company said to be planning a facility-commissioning event Nov. 15 at Corpus Christi.

U.S. Secretary of Energy Rick Perry celebrated the looming shipment. "Approving short-term LNG exports from projects like Corpus Christi is just one example of how the administration is pursuing energy dominance and boosting our economy," Perry said in a statement.

Cheniere expects Corpus Christi LNG to start commercial service in 2019.

The recent FERC authorization did not grant approval to commence commercial service of the Corpus Christi terminal, which Cheniere touts as the first such facility built from the ground up in the Lower 48 instead of adapted from an existing import facility. To begin service, Corpus Christi LNG will need an additional authorization from FERC after the commission determines that the terminal was built in accordance with the original certificate order.

Cheniere is building a second 4.5-mtpa train at Corpus Christi and expects it to be completed in the second half of 2019. In May, Cheniere announced a final investment decision for a third train of the same size at the terminal.