Canada’s Tourmaline to supply gas to Cheniere’s Corpus Christi LNG plant

Canada’s Tourmaline Oil will supply gas to a planned expansion at Cheniere’s Corpus Christi LNG export plant in Texas as part of a deal revealed on Thursday.

Cheniere’s unit Corpus Christi Liquefaction Stage III has entered into a long-term gas supply agreement with Tourmaline Oil Marketing, a unit of Tourmaline.

Under the deal, Tourmaline has agreed to sell 140,000 MMBtu per day of natural gas to Corpus Christi Stage III for a term of 15 years beginning in early 2023, according to a statement by Cheniere.

Cheniere said it would market the LNG associated with this gas supply or about 0.85 million tonnes per annum (mtpa).

In addition, the US LNG exporter will pay Tourmaline an LNG-linked price for its gas, based on the Platts Japan Korea Marker (JKM), after deductions for fixed LNG shipping costs and a fixed liquefaction fee.

Seven mid-scale trains

This Integrated Production Marketing (IPM) transaction would support the development of the third expansion stage at Corpus Christi.

“This latest IPM agreement with Canada’s largest natural gas producer demonstrates the breadth of Cheniere’s natural gas resource supply and the range of our commercial options,” said Jack Fusco, Cheniere’s CEO.

“This commercial agreement is expected to support our shovel-ready Corpus Christi Stage III project while enabling Canadian natural gas to reach international LNG markets,” he said.

The Corpus Christi Stage III project will include up to seven mid-scale liquefaction trains with a total expected nominal production capacity of about 10 mtpa.

Furthermore, the project has received all necessary regulatory approvals, according to Cheniere.

However, Cheniere still needs to make a final investment decision on the expansion project.

To remind, Bechtel has earlier this year handed over operational control of the third train at the Corpus Christi plant to Cheniere, marking the substantial completion of the liquefaction unit.

The Corpus Christi liquefaction plant now consists of three operational trains with each having a capacity of about 5 mtpa.

Most Popular

Venture Global’s Plaquemines LNG to commission third jetty

US LNG exporter Venture Global LNG has received approval from the US FERC to introduce hazardous fluids to the third jetty at its Plaquemines LNG export plant in Louisiana.

KARMOL’s FSRU named in Singapore

KARMOL, a joint venture of Turkiye's Karpowership and Japan's MOL, has named its latest floating storage and regasification unit at Seatrium's yard in Singapore.

Vietnam’s Cai Mep LNG terminal gets commissioning cargo

Nebula Energy’s AG&P LNG and Vietnam's Hai Linh have received the first commissioning cargo at their Cai Mep LNG import terminal in Vietnam, according to shipping data.

More News Like This

Cheniere’s Corpus Christi expansion project almost 84 percent complete

The Stage 3 expansion project at Cheniere’s Corpus Christi LNG export plant in Texas is almost 84 percent complete.

Port of Corpus Christi completes ship channel expansion

The US Port of Corpus Christi in Texas has completed the $625 million ship channel improvement project.

Cheniere kicks off Sabine Pass LNG maintenance

US LNG exporting giant Cheniere has started planned maintenance at its Sabine Pass LNG export facility in Louisiana.

Cheniere to introduce feed gas to second Corpus Christi expansion train

US LNG exporter Cheniere is nearing the introduction of feed gas to the second train of the Corpus Christi Stage 3 expansion project in Texas.