Eversheds Sutherland LNG Law Blog
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First Commissioning Cargo Departs Cheniere’s Corpus Christi Liquefaction Facility

Cheniere Energy, Inc. (“Cheniere”) announced today that the first commissioning cargo of LNG “has loaded and departed from its Corpus Christi liquefaction facility in Texas, marking the first export of LNG from the state and from a greenfield liquefaction facility in the lower 48 states.”  The Corpus Christi liquefaction facility’s first train produced first LNG in November and is expected to reach substantial completion in the first quarter of 2019. Train 2 is expected to reach substantial completion in the second half of 2019, and Train 3 in the second half of 2021....
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EIA: U.S. LNG export capacity to more than double by the end of 2019

The U.S. Energy Information Administration (“EIA”) projects that U.S. LNG export capacity will reach 8.9 Bcf/day by the end of 2019, making it the third largest in the world behind Australia and Qatar. Currently, U.S. LNG export capacity stands at 3.6 Bcf/day, and it is expected to end the year at 4.9 Bcf/day once the Cameron LNG terminal in Cameron Parish, La., and Freeport LNG terminal on Quintana Island, Texas, become...
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Gail India Looking to Exchange Cove Point LNG Cargoes

Reuters reports that Gail India is looking to exchange three LNG cargoes during the first quarter of 2019. According to the report, Gail is offering one LNG cargo per month from the Dominion Cove Point LNG terminal in Lusby, Md., for loading in the first quarter of 2019, in exchange for corresponding deliveries to India. Gail India has 20-year deals to buy 5.8 million tonnes per year of U.S. LNG, split between the Cove Point LNG terminal and Cheniere Energy’s Sabine Pass LNG terminal in Cameron Parish, La. The article reports that due to only a few LNG tankers being available to ship the LNG...
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Financing a Challenge to European Imports of U.S. LNG

Bloomberg reports that Andree Stracke, chief commercial officer at German company RWE AG’s trading unit, says that one of the challenges in getting U.S. LNG to Europe is a lack of financing. RWE AG is Germany’s biggest power producer which signed two contracts for U.S. LNG supply this year. According to the report, “to minimize price risk, lenders to U.S. projects typically require sales of future production to be based on Henry Hub, the U.S. gas benchmark. But European buyers want rates linked to their markets.” U.S. banks apparently will not lend against European gas...
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Vitol and Petronas Sign HOA for LNG Canada Supplies

PETRONAS through its subsidiary, PETRONAS LNG Ltd and Vitol Asia Pte Ltd (Vitol) have announced the signing of binding Heads of Agreement (HOA) for a long-term LNG sale and purchase agreement. Under the terms of the agreement, signed on October 1, 2018, the LNG supply to Vitol, commencing in 2024, will be approximately up to 0.8 million tonnes per annum for a period of up to 15 years on both Delivered Ex-Ship (DES) and Free on Board (FOB) basis. The primary supply to Vitol will come from the proposed LNG Canada terminal in British...
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Commissioning Continues at Corpus Christi LNG Terminal

Platts reports that deliveries of feed gas to Cheniere Energy’s Corpus Christi LNG terminal have increased recently as efforts are intensified to load the first full cargo of LNG for export from the terminal. Platts predicts the cargo may go to Europe because of higher LNG prices than the Far...
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LNG Production Begins at Cheniere Corpus Christi Terminal

Cheniere Energy and Bechtel have jointly announced the production of the first LNG from Cheniere Energy’s Corpus Christi Liquefaction and LNG export terminal project in Corpus Christi, Texas. The companies also announced that last week the fifth LNG production train began production at Cheniere Energy’s Sabine Pass LNG terminal in Cameron Parish,...
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