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Cheniere Initiates NEPA Pre-Filing Process for Creole Trail LNG Terminal, Pipeline

Cheniere Energy Inc. has initiated the National Environmental Policy Act (NEPA) pre-filing process at FERC for its fourth proposed liquefied natural gas (LNG) import terminal, Creole Trail LNG, and an associated 118-mile 3.3 Bcf/d pipeline system from the terminal at the mouth of the Calcasieu Channel in Cameron Parish, LA, to Rayne, LA.

The Creole Trail terminal and associated pipeline is expected to cost $900 million and would be the largest receiving terminal in North America at 3.3 Bcf/d of initial processing capacity. It is planned for service in 2009. The entire permitting process is expected to take 12-18 months and the construction process should take about three years.

Cheniere also is a sponsor of the Freeport LNG terminal in Brazoria County, TX, the Sabine Pass LNG terminal in Sabine Pass, LA, and the Corpus Christi LNG terminal in Texas (see NGI's LNG terminal list). Both Freeport and Sabine Pass already have received FERC permits.

"The residents of Cameron Parish, its leaders, civic organizations and Louisiana's state and federal representatives spoke loudly in their support of our Sabine Pass LNG receiving terminal as they gave us the opportunity to earn their trust and welcomed us into their community," said CEO Charif Souki. "As we embark together on the Creole Trail LNG receiving terminal and pipeline, we are honored to have their support."

Cheniere LNG President Keith Meyer said each LNG project will create more than 600 jobs during construction and more than 60 permanent jobs. The Creole Trail terminal will be equipped with two unloading docks capable of handling up to 250,000 cubic meter vessels, four 160,000 cubic meter tanks with LNG storage capacity of 13.5 Bcfe and the ability to process 3.3 Bcf/d.

The proposed Creole Trail Pipeline will have an initial design capacity of 3.3 Bcf/d. It will originate at the LNG terminal and extend 118 miles north-northeast through Cameron, Calcasieu, Beauregard, Allen, Jefferson Davis and Acadia Parishes where it will terminate near Rayne. It will be designed with potential interconnections to interstate and intrastate pipelines with more than 12 Bcf/d of transportation capacity.

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