Cheniere Issues Notice To Proceed For LNG Export Facility

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Cheniere Energy Partners, L.P. issued a notice to proceed to Bechtel Oil, Gas and Chemicals, Inc. to construct the first two liquefaction trains of the Sabine Pass liquefaction project.  The first liquefaction train is expected to start operations as early as 2015, with the second expected to commence operations six to nine months thereafter.
  “The Sabine Pass LNG terminal will become the first facility in the contiguous U.S. capable of exporting natural gas as LNG, said Charif Souki, Chairman and CEO.  “Two years after announcing our plans to develop the liquefaction facility, we will begin construction.  In those two years, we were able to finalize long-term commercial arrangements with four global LNG buyers for over 2 Bcf/d for 20 years, negotiate a construction agreement for the first 1 Bcf/d on a lump sum basis, and most importantly work with governmental agencies at the federal, state and local level to receive all necessary permits to begin construction on a new facility with no precedent in the Lower 48.  It is a testament to the flexibility of the U.S. markets and institutions that a small company like ours was able to accomplish so much in a short time.”