Houston-based Cheniere Energy Inc has began production at what will become the first U.S. terminal to export natural gas from shale formations.
It has officially flipped the switch at its liquified natural gas (LNG) export terminal in Louisiana, bringing production online to fill its first LNG export cargo set for January 2016.
According to Bloomberg, Cheniere Energy is receiving about 50 million cubic feet of natural gas a day. The company is chilling the natural gas into liquefied natural gas, and then storing it in tanks.
Cheniere noted that the first cargo ship will leave its complex in January by tanker and BG Group is contracted to receive the first shipment.
Production began at Cheniere's long-anticipated liquefaction facility at Sabine Pass on Dec. 30, confirmed Richard Ennis, managing director and head of natural resources at New York-based ING Capital LLC, which provided financing for the project.
With production in place, Cheniere's terminal is on schedule to be the first in the country to export LNG produced in U.S. shale formations, said Ennis.