Cheniere Energy Inc., which shipped its first cargo of liquefied natural gas in February, has been cleared to double exports from its landmark terminal in Louisiana.
FuelFix.com reports Cheniere’s second liquefaction plant at Sabine Pass was approved by the Federal Energy Regulatory Commission on Wednesday.
Each plant has the capacity to produce the equivalent of about 650 million cubic feet a day. Additional volumes will come at a testing time for the global LNG market, which is reeling from a worldwide glut that’s set to worsen through 2020 as demand from key Asian customers slows.
Still, the first LNG exports from the lower 48 states have helped whittle down a U.S. supply glut and put Cheniere on the road to posting its debut profit.
Train 2, as the plant is known, began producing LNG on July 28 during the commissioning process. Trains 1 and 2 were shut in late September for planned work, which was expected to last about four weeks. Next year, the company is planning to bring a third plant online and start the commissioning of a fourth.
By starting up two liquefaction plants, Cheniere will be able to start taking in fixed payments for 20 years from customers whether or not they decide to actually take any LNG from Sabine Pass.
A contract with Royal Dutch Shell goes into effect this December for Train 1, while one with Spain’s Gas Natural Fenosa starts in September 2017, according to a company presentation earlier this year.
