Cheniere to spend $6 billion on LNG terminal

Cheniere to spend $6 billion to convert terminal for natural gas exports

Associated Press

LAKE CHARLES, La. (AP) -- Cheniere Energy Partners LP plans to spend at least $6 billion to modify its liquefied natural gas terminal in southwestern Louisiana to export natural gas.Houston-based Cheniere announced the project in May and unveiled additional details Tuesday. The company said the project would create 148 new jobs, retain 77 current jobs and provide 3,000 peak construction jobs.Gov. Bobby Jindal, during a news conference in Lake Charles, said the state is providing an economic package including industrial tax exemptions and a program that provides rebates for companies creating high-paying jobs.Cheniere plans to begin construction next year and hopes to be exporting natural gas in 2015.The terminal in Cameron Parish was originally built to import LNG when natural gas supplies were much lower. The appeal of exporting gas has come with vastly larger supplies due to shale gas development and lower domestic prices for the commodity.The U.S. Energy Department cleared the way for the project on May 20.Cheniere said it will be allowed to export up to 803 billion cubic feet of gas a year from the terminal. The gas will be carried on tankers after being chilled to super-low temperatures to become liquefied natural gas for transit.The terminal went into service in 2008 and has been handling imports of gas. Cheniere said the expansion project will enable the terminal to export and import gas.

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