Despite difficult market conditions impacting LNG demand, Cheniere plans to move forward with plans for a sixth train at its Sabine Pass LNG export plant in Louisiana, Reuters reports.
The nation’s largest U.S. liquefied natural gas company said it expects investment in new projects worldwide to decline this year and next as the industry grapples with the coronavirus-led economic slump that has sliced 30% off worldwide fuel demand.
But that won’t impact its plans for expansion at Sabine Pass. Cheniere said it still expects to complete the third liquefaction train at its Corpus Christi LNG export plant in Texas in the first half of 2021 and the sixth train at Sabine Pass in the first half of 2023.
Cheniere said demand for the super-cooled fuel could potentially fall in coming quarters, a reversal from years of record-setting growth, Reuters reports, as slower economic activity and high storage inventory levels reduce the need for imports.
Cheniere said more customers told them they would not take delivery of LNG cargoes recently, but did not give a specific number. It does not expect the cancellations to have a material impact on its forecasted financial results for 2020, as most of its business is through long-term contracts.