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First cargo arrives at new U.S. LNG terminal

Sat Apr 12, 2008 9:13pm IST
 
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HOUSTON, April 12 (Reuters) - The first cargo of liquefied natural gas has arrived at the new Sabine Pass LNG terminal in southwest Louisiana, the U.S. Coast Guard said Saturday.

The Celestine River, loaded at Nigeria, docked Friday with a cargo that will be used to "cool down" the facility for commercial operation by the end of June, officials said.

The terminal, one of three new U.S. LNG import facilities set to receive their first cargoes within the next week, is owned by Cheniere Energy (LNG.A: Quote, Profile, Research).

It cost $1.5 billion to build and will be capable of unloading, regasifying and sending into pipelines to markets up to 2.6 billion cubic feet of gas per day.

Pipes, tanks and other equipment at new LNG terminals must be cooled slowly before full operations because of the frigid temperature of the energy-rich cargo handled.

LNG is gas cooled to -260 degrees Fahrenheit (-162 Centigrade) at overseas production facilities to liquefy it for shipment to buyers beyond the reach of pipelines.

When the specially built tankers carrying the LNG arrive at receiving terminals such as Sabine Pass, it is unloaded, regasified and sent into the U.S. pipeline grid for use.

The other two new terminals set for startup soon are at Freeport, Texas, and offshore of Boston, Massachusetts. (Reporting by Bruce Nichols)

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