Cheniere eyes expansion of LNG exports

The US’s largest LNG exporter Cheniere Energy is targeting a major ramp up of LNG exports amid the improved business climate for the sector under the new Presidency of Donald Trump, Cheniere’s CEO Jack Fusco told Reuters on February 20.

“We intend to strategically pursue permits to ensure the long-term growth optionality of Sabine Pass and Corpus Christi,” Fusco told Reuters, referring to the firm’s two large export facilities, which boast production capacities of 30mn tonnes per year and 15mn tpy respectively.

The announcement comes as the Houston-headquartered company finds itself in choppy waters, forecasting 2025 profits lower than analyst estimates and facing an increased challenge from Venture Global for the position of top US exporter. Lower prices in a tight global LNG market over the past year also dampened forecasts for the firm.

But winds of change are blowing now for the US LNG industry following Donald Trump’s return to the White House. The 47th US President wasted little time putting his stamp on the sector as he granted an export license earlier this month to Commonwealth LNG, thereby restarting the approvals of LNG export permits.

With tailwinds now emerging for the LNG sector, Fusco says Cheniere will take full advantage and will double its current production to reach 90mn tpy through the expansion of its two largest export facilities.

Expansion of the Corpus Christi facilities is moving along well with Stage 3 achieving first LNG in December and shipping its first cargo from the Texas plant earlier this month.

In total, the expansion project will add seven new midscale liquefaction trains, increasing production capacity by 10mn tpy, bringing the facility’s nameplate capacity to 25mn tpy.

Construction of the seven new trains is expected to be finished before the end of 2025 and the firm foresees about 2mn tpy of new LNG supply to be added by then.