Cheniere Energy has made a positive Financial Investment Decision (FID) to advance the development of the LNG Corpus Christi Stage 3 Liquefaction project (CCL Stage 3) in Texas.
The expansion project is expected to have more than 10 million tonnes per annum capacity, with the first exports expected to start in 2025. It will entail an investment of $8bn, reported Reuters.
In addition, Cheniere has notified Bechtel Energy to proceed with construction at CCL Stage 3, which started earlier this year under limited notice to proceed.
Bechtel is a US-based engineering, procurement, construction (EPC), and project management company.
The project will strengthen its LNG infrastructure platform, provide LNG to the global markets by the end of 2025, and create value for its stakeholders, said the company.
Cheniere president and chief executive officer Jack Fusco said: “Reaching FID on Corpus Christi Stage 3 represents an important milestone for Cheniere as we move forward on this significant growth project.
“I would like to recognise the Cheniere team, our financial partners, our EPC partner Bechtel and our long-term customers for their demonstrated teamwork, commitment and execution, all of which were critical elements in the successful commercialisation and financing of CCL Stage 3.
“CCL Stage 3 is supported by a truly global portfolio of long-term customers and reflects the call for investment in natural gas infrastructure around the world to support environmental priorities and long-term energy security.”
Earlier this month, Cheniere’s subsidiary Cheniere Corpus Christi Holdings (CCH) secured $4bn in amended senior secured term loan due 2029, along with an extended $1.5bn working capital facility due 2027.
The CCH 2029 term loan will be adequate to fund about half of the total expenses to develop, construct, and place into service CCL Stage 3, and other related infrastructure.
Cheniere is expected to fund the remaining costs for the expansion project.
In conjunction with the financing, Cheniere contributed its wholly-owned equity interests in Corpus Christi Liquefaction Stage 3 (CCL Stage 3) to CCH.
Also, the company has merged CCL Stage 3 into Corpus Christi Liquefaction (CCL), a subsidiary of CCH, with CCL continuing as the surviving entity.
