Cheniere's good news

Vol 15, PW 21 (03 May 12) News in Brief

GAIL is relieved Houston-based Cheniere Energy has secured US Federal Energy Regulatory Commission (FERC) approval to build gas liquefaction and export facilities at its Sabine Pass LNG receiving terminal in Louisiana.

FERC authorisation came through on April 16 - four months after GAIL signed a GSPA with Cheniere on December 12 to buy 3.5m t/y LNG for 20 years from 2017. “Our GSPA with Cheniere had FERC approval as a condition,” says GAIL.

“But our due-diligence indicated approval was sure to come through so we signed the agreement anyway.” GAIL plans to bring in LNG from Sabine Pass at the Dabhol LNG receiving terminal in Maharashtra, at a low ‘landed cost’ of around $10/mmbtu against $16/mmbtu on average for LNG landing at Dahej or Hazira.

Cheniere will build four LNG trains, each with a 4.5m t/y capacity, adding up to 18m t/y. Kogas and Gas Natural Fenosa have also contracted to take 3.5m t/y each, while BG Gulf Coast LNG will take 5.5m t/y.