Re: Why Gas Giant Russia Is No Quick Fix for Europeís Energy Crunch
Here we go. Let's roll.
Zacks Equity Research
Fri, September 24, 2021, 9:49 AM
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Cheniere Energy Inc. LNG obtained permission from the Federal Energy Regulatory Commission to introduce feed gas to commission certain portions of Train 6 at the Sabine Pass liquefied natural gas export facility in Louisiana.
The approval was in response to Cheniereís request to introduce gas and enable the Train 6 fuel gas system. Feed gas is processed natural gas from pipelines, which will be converted into liquefied natural gas.
The company expects Train 6 to complete in the first half of 2022. However, most analysts opine that the facility will start producing liquefied natural gas in test mode later this year. Once Train 6 is completed, the facility will have a production capacity of about 30 million metric tons per year of liquefied natural gas.
Cheniere is a major liquefied natural gas exporter and the largest buyer of natural gas in the United States. Notably, feed gas deliveries to the company's Sabine Pass facility hit their highest level since May, when the terminal was allowed to begin flows to Train 6 as part of commissioning.
Beside Sabine Pass, Cheniere also owns the Train 3 at its Corpus Christi liquefied natural gas export plant in Texas. With scheduled facility or pipeline maintenance affecting two other export terminals, the companyís Sabine Pass and Corpus Christi facilities combined for more than 60% of the total 10.2 billion cubic feet per day of feed gas demand in the United States.
Once fully operational, Cheniere's ninth overall liquefaction unit across its two terminals in Sabine Pass and Corpus Christi will bring its total capacity to 45 million metric tons per year. The company expects to make a final investment decision in 2022 on a 10-million-metric-ton year expansion with the help of mid-scale units at the site of its Texas facility.