Cheniere Energy, Inc. (Cheniere) (NYSE American: LNG) announced yesterday that its Board of Directors has made a positive Final Investment Decision (FID) with respect to Train 3 at Cheniere’s Corpus Christi liquefaction project (CCL Project) and plans to issue a full notice to proceed to Bechtel Oil, Gas and Chemicals, Inc. (Bechtel) to continue construction which began in late 2017 under limited notice to proceed. This represents the first FID on new liquefaction capacity in the United States since 2015.
“Moving forward with the construction of Train 3 at Corpus Christi reinforces our position as the leader in U.S. LNG,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “I would like to recognize the Cheniere team, our financial partners, our EPC partner Bechtel and our long-term customers at the CCL Project for their demonstrated teamwork, commitment and execution, which were critical elements in the successful commercialization and financing of Train 3. We continue to see significant tailwinds in the global LNG market and look forward to delivering additional growth and value to shareholders.”
Cheniere’s wholly owned subsidiary, Cheniere Corpus Christi Holdings, LLC (Corpus Christi Holdings), closed on its previously announced amended credit facilities on May 22, 2018, and total commitments under the credit facilities have been increased to $6.1 billion. The amended credit facilities will be used to fund a portion of the costs of developing, constructing, and placing into service Trains 1, 2, and 3 and associated pipeline and other infrastructure at or near the CCL Project, and for related business purposes. The remaining costs of the CCL Project are expected to be funded by Cheniere under its amended Equity Contribution Agreement with Corpus Christi Holdings, and from cash flows generated by Trains 1 and 2 of the CCL Project after they are placed into service.
The CCL Project is a three Train liquefaction project under construction near Corpus Christi, Texas. Each Train is expected to have a nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, and potential overdesign, of approximately 4.5 mtpa of LNG.
Cheniere Energy, Inc., a Houston-based energy company primarily engaged in LNG-related businesses, owns and operates the Sabine Pass LNG terminal in Louisiana. Directly and through its subsidiary, Cheniere Energy Partners, L.P., Cheniere is developing, constructing, and operating liquefaction projects near Corpus Christi, Texas and at the Sabine Pass LNG terminal, respectively. Cheniere is also exploring a limited number of opportunities directly related to its existing LNG business.
For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, filed with the Securities and Exchange Commission.