February 12, 2018 / 3:35 PM / 8 months ago

Cheniere LNG production unaffected by shutdown of leaky storage tanks

LONDON/NEW YORK, Feb 12 (Reuters) - Cheniere Energy said on Monday liquefied natural gas (LNG) production from its Sabine Pass export plant in Louisiana will not be affected following an order to shut two cracked storage tanks that leaked the super-cold fuel.

The U.S. Department of Pipeline and Hazardous Materials Safety Administration (PHMSA) on Feb. 8 ordered Cheniere Energy to shut two LNG storage tanks after one tank developed a one-to-six foot long crack, leaking the fuel into an outer layer.

During the investigation, PHMSA discovered a second tank had also experienced releases of LNG from the inner tank, raising the possibility that similar leaks may have occurred in multiple tanks, it said in its corrective action order report.

“Safety is Cheniere’s number one priority, and we want to stress that there was and is no immediate danger to our community, workforce, or our facility from this incident, nor is there any impact on LNG production,” a Cheniere spokesman said.

“Cheniere has initiated an event investigation and is currently working with experts on a repair plan,” he said.

Reporting by Oleg Vukmanovic in London and Scott DiSavino in New York, editing by Adrian Croft

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