Sabine Pass Liquefaction & LNG Export

Sabine Pass is the first liquefied natural gas export terminal to be constructed in the lower 48 states.  Owned and operated by Cheniere Energy, a Houston based company, is primarily engaged in LNG related businesses.

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Located in Cameron Parish, Louisiana, Sabine Pass has completed construction of the first two of its six liquefaction trains. Each train has a capacity to liquefy 0.55 billion cubic feet per day (bcfd) of natural gas.  Once all 6 trains are up and running, the plant would have a staggering capacity of 3.3 bcfd. In other words, each liquefaction train is expected to have nominal production capacity close to 4.5 million tons per annum (mtpa) of LNG. Three other trains at Sabine Pass are currently under construction, which are scheduled to come online in 2017-2019. Decision on financial investment on the sixth train is still awaiting approval. Through its owned subsidiary Cheniere Creole Trail Pipeline, Cheniere also owns a 94 mile pipeline that connects Sabine Pass LNG terminal with a number of large interstate pipelines.

Globally, six other liquefaction projects are scheduled to come online this year in Australia, Indonesia, and Malaysia. Together they would approximately add 8% to the global liquefaction capacity, while just the two trains at Sabine Pass would add 2% to the total.

The future of LNG production facility in the US looks extremely promising. Although one would argue that the current slump in oil price has stalled developing projects. LNG export facilities currently under construction in the US including Sabine Pass will have a total liquefaction capacity of 9.2 bcfd which is equivalent to 13% of current domestic natural gas production. Once all facilities under construction become operational, which is expected to happen somewhere around 2020, the US would possess the third largest liquefaction facility in the world after Australia and Qatar.

 Courtesy: EIA

Courtesy: EIA