In March 2005, the Federal Energy Regulatory Commission (FERC) approved the expansion of Sabine Pass LNG receiving terminal capacity from 2.6 Bcf/d to 4 Bcf/d. The terminal was constructed in two phases. Phase 1, which went onstream in 2008, has storage capacity for 10.1 Bcf of LNG in three tanks, each with an LNG capacity of 160,000 m3 and a maximum continuous rate of 2.6 Bcf/d.

Phase 2 was constructed in stages and was completed in 2009. It included the addition of a fourth and fifth storage tank with additional vaporizers that bring the capacity rate to 4.3 bcf/d.

Becoming an export facility

In June 2010 Cheniere's subsidiary Cheniere Energy Partners, L.P. announced that it was initiating a project to add liquefaction services at Sabine Pass LNG, making it a bi-directional facility capable of liquefying and gasifying natural gas. According to early estimates, the expected fee for bi-directional services will range from approximately $1.40/MMBtu to $1.75/MMBtu.

Initially, Cheniere envisions adding two liquefaction trains capable of processing up to 0.7 Bcf/d of natural gas into LNG. The trains would boast an average liquefaction capacity of approximately 3.5 mtpa. However, the Sabine Pass site could accommodate two additional 0.7-Bcf/d liquefaction trains. Cheniere stated that it would consider a further expansion based on customer interest.

Cheniere expects to work with Bechtel Oil, Gas and Chemicals, Inc. to design and build the two new liquefaction trains, which will integrate ConocoPhillips Optimized Cascade technology.

In early August 2010, FERC approved Cheniere's request to begin the NEPA (National Environmental Protection Act) pre-filing process. Pending state and federal regulatory approvals, a favorable final investment decision, and satisfactory financing terms and construction phases, Sabine Pass could begin exporting LNG as soon as 2015.