Cheniere Energy Partners L.P. reported its 2Q 2014 results today, with updates on the progress of liquefied natural gas (LNG) facilities on the US Gulf coast.
The company reported a US$226.2 million loss for the 3 months ending 30 June 2014, compared to a net loss of $47 million for the same period in 2013. The loss is due to development expenses, loss on early extinguishment of debt, and derivative losses.
Cheniere said development expenses were primarily for the liquefaction facilities it’s developing through Sabine Pass Liquefaction LLC, at the Sabine Pass LNG terminal adjacent to the existing regasification facilities.
Liquefaction project update
Cheniere is making progress on the liquefaction project, which is being developed for up to six LNG Trains, each with an expected nominal production capacity of approximately 4.5 mtpa.
Sabine Pass Liquefaction has entered into six third-party LNG SPAs with an aggregate total of 19.75 mtpa. These commence with the date of first commercial delivery of Trains 1 through 5, as specified in the respective SPAs.
The Trains are in various stages of development:
- Construction on Trains 1 and 2 began in August 2012, and as of 30 June 2014, the overall project for Trains 1 and 2 was about 69% complete, which is ahead of the contractual schedule. Based on the current construction schedule, Cheniere anticipates that Train 1 will produce LNG as early as late 2015.
- Construction on Trains 3 and 4 began in May 2013, and as of 30 June 2014, the overall project for Trains 3 and 4 was about 36% complete, which is ahead of the contractual schedule. Cheniere expect Trains 3 and 4 to become operational in late 2016 and 2017, respectively.
- Sabine Pass Liquefaction recently started developing Trains 5 and 6 and began the regulatory process in February 2013. Cheniere entered into SPAs for about 3.75 mtpa in aggregate that commence with the date of first commercial delivery for Train 5. Cheniere received authorizations from the US Department of Energy (DOE) to export 503 Bcf/yr of LNG volumes from Trains 5 and 6 to free trade agreement countries. Authorization to export LNG to non-FTA countries is pending. Federal Energy Regulatory Commission (FERC) authorization is also pending. Cheniere said it will make a final investment decision to begin construction on Trains 5 and 6 based upon, among other things, entering into acceptable commercial arrangements, receiving all regulatory approvals, and obtaining financing.
Cheniere Partners owns 100% of the Sabine Pass LNG terminal located on the Sabine Pass deepwater shipping channel, less than four miles from the US Gulf Coast. The Sabine Pass LNG terminal includes existing infrastructure of five LNG storage tanks with capacity of approximately 16.9 Bcf equivalent (Bcfe), two docks that can accommodate vessels with capacity of up to 265,000cu m, and vaporizers with regasification capacity of approximately 4.0 Bcf/d.
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