US LNG exporting giant Cheniere said on Wednesday it has taken a financial investment decision on Stage 3 expansion at its Corpus Christi LNG export plant in Texas.
Cheniere also issued full notice to proceed to Bechtel to continue construction on CCL Stage 3, which began earlier this year under limited notice to proceed, it said in a statement.
The Corpus Christi liquefaction plant now consists of three operational trains with each having a capacity of about 5 mtpa.
Under the expansion, Cheniere will add up to seven midscale trains, each with an expected liquefaction capacity of about 1.49 mtpa, with a total production capacity of more than 10 mtpa.
The firm recently secured more time from FERC to build the expansion project.
“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,” Jack Fusco, Cheniere’s CEO said.
“CCL 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 said.
Financing
Cheniere also said in the statement that its unit Cheniere Corpus Christi Holdings or CCH has closed on an amended and restated approximately $4 billion senior secured term loan due 2029.
Also, CCH closed 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 to CCH, and merged CCL Stage III into Corpus Christi Liquefaction, a subsidiary of CCH, with CCL continuing as the surviving company.
Borrowings under the CCH 2029 term loan would fund about half of the total expected cost to develop, construct, and place into service CCL Stage 3, Cheniere said.
This also includes the associated pipeline expansion and other infrastructure at or near the project, and for related business purposes, it said.
Cheniere added that it expects to provide funds for the remaining costs of the project.