Cheniere’s Corpus Christi LNG project gets federal green light

US-based Cheniere’s proposed 13.5mtpa greenfield Corpus Christi LNG export project has received final authorisation to begin construction from the US Federal Energy Regulatory Commission (FERC), meaning the venture is close to reaching a final investment decision (FID).

The south Texas project, Cheniere’s second export proposal, received the authorisation on 30 December. Corpus Christi LNG had already received a final environmental impact statement from the agency on 8 October.

This now puts Cheniere on the final lap to receive its non-free trade agreement (non-FTA) export licence from the US Department of Energy (DOE), a sister regulatory agency to FERC.

The DOE revised its guidelines on issuing non-FTA licences for LNG exports after a backlog of proposals formed. In late May 2014, DOE determined that non-FTA licences, which are key to export to countries such as Japan, the European Union and China, would only be issued once a project has received full permitting clearance from FERC.

Cheniere signed its most recent 20-year, long-term sales and purchase agreement (SPA) with Portuguese utility EDP for 0.77mpta from the third train.

The project has now committed 8.42mtpa in long-term capacity from a consortium of buyers from the three-train facility. Cheniere was ready to commit to an FID if as much as 6mtpa was contracted long-term, ICIS understands.

Financing also has been close in hand with a recent announcement by Cheniere that a consortium of 18 commercial banks and lenders would raise $11.5bn in debt facilities for Corpus Christi.

According to the FERC authorisation, Corpus Christi has a designed nameplate capacity of 15mpta with trains of 5mpta each. Excess capacity is understood to be available for Cheniere’s marketing subsidiary.

The project also includes the newbuild Corpus Christi pipeline connecting the facility to a point near the city of Sinton, Texas. Ruth Liao