Cheniere Marks Milestone at Corpus Christi Project: First LNG in Phase 3

Cheniere Energy’s Corpus Christi Stage 3 Liquefaction Project (CCL Stage 3), still in commissioning, produced its first LNG from Train 1 in late December 2024. Train 1 may achieve significant completion by end of Q1 2025, more than six months quicker than the original completion date. Following near-completion, Bechtel Energy will transfer care, custody, and control of Train 1 to Cheniere.

CCL Stage 3

Cheniere gave Bechtel full notice to proceed on CCL Stage 3 in June 2022: this stage consists of seven midscale trains with a projected total production capacity of over 10 mtpa of LNG. In late November 2024, project completion for CCL Stage 3 was 75.9%:

• Engineering 96.8% complete
• Procurement 97.2% complete
• Subcontract work 87.7% complete
• Construction 92% complete

Following the completion of CCL Stage 3’s seven trains, the estimated total production capacity of the Corpus Christi liquefaction facility will be over 25 mtpa of LNG.

Cheniere News

In early November 2024, Cheniere voluntarily set a measurement-supported Scope 1 annual methane-intensity target for its LNG liquefaction facilities: The company will maintain a methane-emissions intensity of 0.03% per ton of produced LNG across two Gulf Coast liquefaction facilities by 2027. The target leverages data from its quantification, monitoring, reporting, and verification projects, which include data from approximately 50 aerial measurements at liquefaction facilities conducted over a 16-month timeframe.

The company also updated its peer-reviewed LNG life cycle assessment (LCA) published in 2021. Its updated LCA finds that, across the board, Cheniere’s supply-chain specific greenhouse gas emissions intensity is lower than figures presented in the Department of Energy’s National Energy Technology Laboratory study, originally published in 2019. Cheniere’s new report was approved by a leading academic journal and will be published soon.

Cheniere’s general climate strategy uses a data- and science-based approach to identify and execute potential emissions reduction opportunities. It partners with suppliers in the LNG value chain, scientific experts, academic institutions, and customers to inform, understand, and improve the characterization of emissions performance and establish mitigation strategies across the supply chain.

In August, Cheniere Marketing, a subsidiary of Cheniere Energy, signed a long-term LNG sale and purchase agreement (SPA) with Galp Trading. Under the SPA, Galp will purchase approximately 0.5 mtpa of LNG for 20 years on a free-on-board basis—the purchase price is indexed to the Henry Hub with a fixed liquefaction fee. LNG deliveries, expected to begin in early 2030s, are subject to a positive financial investment decision on the second train (Train Eight) at the Sabine Pass Liquefaction Expansion Project. Galp will purchase a limited number of early LNG cargoes before Train Eight commences operation.

Bechtel News

Also in August, NextDecade Corp.’s subsidiary, Rio Grande LNG Train 4, executed a lump-sum turnkey engineering, procurement, and construction (EPC) contract with Bechtel Energy. The contract, worth approximately $4.3 billion, covers the construction of Train 4 and associated infrastructure at the Rio Grande LNG Facility. The total estimated project costs for Train 4 and related infrastructure are expected to be $6-$6.2 billion.

Rio Grande LNG is located on a 984-acre site near Brownsville, TX, and is expected to offer emissions reduction of more than 90% through a proposed carbon capture and storage (CCS) project. The CCS project is slated to capture and permanently sequester more than 5 mtpa of CO₂, which is equivalent to eliminating 1 million vehicles from the road on a yearly basis.