Cheniere to develop LNG terminals on Texas coast
13 Jun 2001
Cheniere Energy is acquiring three land lease options for the purpose of developing Liquefied Natural Gas (LNG) terminals along the Texas Gulf Coast.
Estimated to cost $300 million per site, the Cheniere Energy LNG receiving terminals, each capable of initially processing 200 BCF per year, are slated to be operational within six years.
Regulatory permits (from the Federal Energy Regulatory commission as well as state, local, Port Authority and the Coast Guard) are expected to take two to three years, making the project 'construction-ready' in late 2003. Initial LNG imports are anticipated to start in late 2006.
According to a recent report by the Energy Information Administration, natural gas consumption is expected to grow from 20 trillion cubic feet (TCF) in 2000 to 30 TCF in 2010. This growth is fuelled by increasing demand across each consumer group: electric utilities, industrial, commercial and residential. While demand is projected to increase dramatically, domestic production has stabilised at approximately 20 TCF annually in the past decade.
