Liquefied natural gas company Cheniere Energy has made a positive Financial Investment Decision (FID) concerning the 10+ million tons per annum of LNG Corpus Christi Stage 3 Liquefaction Project.
Cheniere said that it issued full notice to proceed to Bechtel Energy to continue construction of the Corpus Christi Stage 3 project which began earlier this year under limited notice to proceed.
“Reaching FID on Corpus Christi Stage 3 represents an important milestone for Cheniere as we move forward on this significant growth project, which will strengthen our market-leading LNG infrastructure platform, provide much-needed volumes to the global LNG market by the end of 2025, and create long-term value for our stakeholders,” 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 for their demonstrated teamwork, commitment, and execution, all of which were critical elements in the successful commercialization and financing of CCL Stage 3.
“Corpus Christi Stage 3 is supported by a truly global portfolio of long-term customers and reflects the call for investment in natural gas infrastructure around the world to support environmental priorities and long-term energy security,” Fusco added.
On June 15, 2022, Cheniere’s wholly-owned subsidiary, Cheniere Corpus Christi Holdings LLC closed on an amended and restated approximately $4 billion Senior Secured Term Loan due 2029 as well as an amended, extended, and upsized $1.5 billion Working Capital Facility due 2027.
In conjunction with the financing, Cheniere contributed its wholly-owned equity interests in Corpus Christi Liquefaction Stage III LLC to CCH, and merged CCL Stage III LLC into Corpus Christi Liquefaction LLC, a subsidiary of CCH, with CCL continuing as the surviving company.
Borrowings under the CCH 2029 Term Loan are being used to fund approximately half of the total expected cost to develop, construct, and place into service CCL Stage 3, the associated pipeline expansion, and other infrastructure at or near the project, and for related business purposes. The remaining costs are expected to be funded by Cheniere.
This 1,000+ acre facility contains three liquefaction units, or trains, with a total capacity of 15 million tons per annum, enough energy to power a city of 2.5 million people for an entire day.
The first two LNG trains, along with the first two LNG tanks and wharf facilities, were completed in August 2019, while the third train and tank and a second berth were finished in March 2021.
Cheniere’s Corpus Christi Stage 3 expansion will include seven midscale trains powered by Chart Technology with motor-driven refrigeration compressors.
Source: Rigzone.com
