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Sabine Pass LNG output continues, minor Corpus Christi impact seen

As the remnants of Tropical Storm Harvey continued to dump historic amounts of rain over Houston and much of the US Gulf Coast region's energy infrastructure on Monday, Cheniere Energy said its Sabine Pass LNG export terminal in Louisiana remained in operation and its Corpus Christi, Texas facility, which had been undergoing construction, so far sustained only minor damage.

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The Houston-based company said in a statement that initial assessments showed it has been lucky to pull through largely unscathed, even as the threat of future disruptions was real considering the track of the storm calls for punishing rain to hit southwest Louisiana in the coming days.

At Sabine Pass in Cameron Parish, LNG production operations continued through the storm, Cheniere said. At Corpus Christi, only minor "cosmetic" impacts were found, the company said.

"Now that the storm has passed through our Corpus Christi construction site, we are pleased to report that Corpus Christi saw no major impacts, and no interruption of LNG production at Sabine Passhas been experienced," CEO Jack Fusco said.

Cheniere said it has opened an emergency office in Dallas, about 250 miles north of Houston, to support its gas supply and trading division and other essential functions to ensure it meets its production obligations at Sabine Pass.

Cheniere said Friday that while Sabine Pass would continue operating during the storm, train 3 was undergoing maintenance unrelated to the storm. The full impact on production on train 3 during the work was not clear. The Sabine Pass terminal has four trains producing LNG.

Cheniere secured and evacuated its Corpus Christi LNG export terminal construction site and closed its Houston corporate offices as Harvey began to roll through the region.

Cheniere is the only US exporter of LNG produced from shale gas. Dominion Energy's Cove Point LNG export terminal in Maryland is expected to begin operations later this year.

--Harry Weber, harry.weber@spglobal.com