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Cheniere’s Sabine Pass facility currently has a capacity of about 30 mtpa following the launch of the sixth train in February 2022.
In December 2023, Cheniere said it plans to build two instead of three liquefaction trains as part of the Sabine Pass Stage 5 expansion project with an optimized unit/cost footprint.
The project includes two large-scale liquefaction trains, each with a nameplate capacity of about 7 mtpa and a maximum production capacity of about 8.43 mtpa.
Including debottlenecking, the expansion will add up to 20 mtpa capacity to the liquefaction plant.
Cheniere previously engaged its long-term partner Bechtel to complete a front-end engineering and design (FEED) study for the expansion project, while the firm filed an application with the FERC for the project in February 2024.
The LNG exporter also needs DOE approval for this project.
Last month, President Donald Trump lifted a moratorium on non-FTA LNG export permits by the former Biden administration.
Trump issued the executive order, which was widely expected, just hours after officially taking over his second four-year term as the president.
Under the new Trump administration, Cheniere intends to strategically pursue permits to ensure the long-term growth optionality of its Sabine Pass and Corpus Christi facilities, CEO Jack Fusco said during the company’s earnings call on Thursday.
“Given that improvement in the permitting environment for LNG projects here in the US, which is a stark contrast from just a few months ago, we have an opportunity and a strategic imperative to secure permits for significant growth at both Sabine and Corpus in order to de-risk the permitting requirements of future project development, with line of sight to a total capacity of over 90 million tonnes per annum,” Fusco said.
Sabine Pass expansion contracts, FID
Cheniere previously said it has signed up to 7 mtpa of contracts for the Sabine Pass expansion project.
When asked about Sabine Pass expansion contracts during the call, Cheniere CCO Anatol Feygin said, “We’ve had very good success on the SPL expansion, where we’ve essentially contracted Train 7 and have now completed our second offtake agreement for Train 8.”
“We’re very comfortable with those agreements and our partners there. And as Zach already mentioned, we’ll look to see how we phase the expansion and make the math work in terms of generating the types of returns that we require for ourselves,” he said.
Cheniere CFO Zach Davis also answered a question about the FID timing for the expansion project.
“I would say it’s at the earliest late 2026, maybe even or more likely 2027 because what’s most important right now is this permitting window and understanding the art of the possible at both of our sites to get to 90-plus million tonnes over time,” he said.
“So we’re going to work on that permitting process and make sure that we tee ourselves up not just for a super brownfield Phase 1, but for the ability to get to 15 million to 20 million tons over time,” Davis said.
“And if that forces us to FID in 2027, so be it. Because it’s most important that we have that optionality long-term,” he said.
“With that said, we’re already spending money on the development of Sabine expansion, and I could see us starting LNTPs (limited notice to proceed) next year on Sabine expansion. So money is going to go out the door, and we’re going to start locking in costs and timeline in a positive way to allow that project to be as successful as every other project we’ve done to date,” Davis said.
