An aerial shot of the Cheniere Energy natural gas liquefaction plant as it neared completion in Gregory, near Corpus Christi. A grand opening is planned for Thursday, Nov. 15, at the plant. Texas Gov. Greg Abbott is expected to attend. Courtesy photo
A $15 billion natural gas liquefaction factory goes online this week in Gregory after years of construction and anticipation. Texas Gov. Greg Abbott will be on hand when Cheniere Energy holds its grand opening ceremony Thursday, Nov. 15.
As the first shipment of LNG leaves the plant the same day, Gulf Coast energy companies will be making an economic statement meant to be heard around the world: Texas LNG is ready to compete and provide. Until recently, Cheniere was the only exporter of LNG in the continental United States. It is the biggest U.S. buyer of physical natural gas.
The Cheniere plant is located on the northeast side of Corpus Christi Bay on the La Quinta Channel in San Patricio County. Product will come via pipelines from the Permian Basin and Eagle Ford shale plays.
Long-range plans include construction of three “trains,” or liquefaction facilities, that turn natural gas into a liquid that can be more easily and cheaply transported long distances.
Each of the three trains will be able to produce 4.5 million tons of product a year. The first train is about to go online; the second is expected to be finished in early 2019. Construction of the third train, which will take four years, should begin shortly after that.
Cheniere’s biggest customer so far signed on in July when the company reached an agreement with CPC Corp. in Taiwan. The agreement involves a 25-year commitment to buy 2 million tons of LNG a year.
Poland’s state-run energy company recently signed a deal with the company as well. Cheniere would not disclose terms of the deal beyond its 24-year length.
The Golar Tundra, a LNG tanker, moored to a jetty at the new terminal Nov. 11. The unladen vessel is expected to make the maiden voyage fully loaded sometime after the Nov. 15 ceremonies, depending on market values of its cargo. The ship traveled from a terminal in India.
