Cheniere Pays Debts, Sabine T4 to Export Soon
US LNG exporter Cheniere Energy made a net 2Q loss of $285mn, little changed from its year-ago 2Q loss of $298mn, it reported August 8.
It would have made a small $21mn profit in 2Q2017 but chose to repay $306mn to debt and other bond holders.
The company said as of July 2017, LNG from its Sabine Pass export complex in Louisiana had reached 24 of the 40 LNG importing countries around the world. That didn’t stop the CEO of a leading European gas importer earlier on August 8 complaining it was too dear relative to European gas prices.
Cheniere said that commissioning of Train 4 at Sabine began March 2017, and that first LNG was achieved in July 2017 but has yet to export. It said 48 and 91 LNG cargoes were exported from Sabine’s other three trains in 2Q and 1H2017 respectively, of which zero and 7 commissioning cargoes.
Cheniere CEO Jack Fusco said that 2Q2017 was “highlighted by the commencement of our long-term contract with [South Korea’s] Kogas and securing equity financing for the Midship [pipeline] project. Subsequent to the end of the quarter, our long-term contract with [Spanish utility] Gas Natural commenced and first LNG production occurred from Train 4 at Sabine Pass.”
Sabine will have six liquefaction trains, each of 4.5mn mt/yr, for a total 27mn mt/yr capacity once complete. Trains 1 to 3 opened between May 2016 and March 2017. The fifth is due to start up 2H 2019 while a final investment decision (FID) on train 6 has yet to be taken. At its Corpus Christi LNG export project in Texas, trains 1 and 2 are being built; train 3 awaits an FID. Both Sabine T6 and Corpus T3 have all necessary regulatory approvals in place.