Cheniere gets draft EIS for Corpus Christi LNG plant

Allen Baker

Cheniere Energy Inc. has received another piece of good news in its attempt to become a player in the LNG terminal business along the Gulf Coast.

The Houston-based company said Nov. 18 that the Federal Energy Regulatory Commission had issued a favorable draft environmental impact statement for its proposed Corpus Christi terminal. The draft EIS says the terminal would have limited adverse impact on the environment, with proper mitigating measures.

Earlier in November, Cheniere announced agreements with both ChevronTexaco and Total for capacity at its Sabine Pass terminal in Louisiana. The draft EIS for that terminal was completed Aug. 12, with the same conclusion as that for Corpus Christi.

Cheniere expects a permit from FERC for Sabine Pass by the end of the year.

For the Corpus Christi facility, FERC set a public comment period that ends Jan. 4, with a public scooping meeting Dec. 15. The terminal will have an initial processing capacity of 2.6 billion cubic feet daily, the same as the Sabine Pass plant.

The Corpus Christi terminal will have three tanks with storage for LNG equivalent to 10.1 billion cubic feet of gas, and two docks in a new marine basin. It is sited on 600 acres of land along the La Quinta Ship Channel in San Patricio County, Texas. The project is expected to cost about $740 million and open in 2008.

Cheniere has a 66.7 percent interest in the Corpus Christi terminal, with an unnamed party holding the rest. It has 100 percent of the Sabine Pass facility, along with 30 percent of a terminal under development at Freeport, Texas.

Cheniere reported a net loss of $5.6 million for the third quarter, essentially representing development expenses for the terminals, partly offset by payments from the minority owner of the Corpus Christi terminal. Working capital was $6.4 million at the end of the quarter.