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    Cheniere Reports Increased 2Q Loss

Summary

Expenses from new export trains cited as reason.

by: Dale Lunan

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Complimentary, Natural Gas & LNG News, Americas, Liquified Natural Gas (LNG), Corporate, Financials, Infrastructure, News By Country, United States

Cheniere Reports Increased 2Q Loss

US LNG developer Cheniere Energy said August 8 its net loss for 2Q 2019 grew to $114mn from $18mn in the comparable period a year ago, reflecting increased operating costs and expenses related to new liquefaction trains brought into service in the past year. Net income in 1H 2019 also fell, to $27mn from $339mn.

During the second quarter, 104 LNG cargoes were exported from Cheniere’s two liquefaction terminals, at Sabine Pass in Louisiana and Corpus Christi in Texas, including one commissioning cargo from Train 2 at Corpus Christi. Volumes exported increased to 361 trillion Btu from 219 trillion Btu (in 61 cargoes) during 2Q 2018.

“The second quarter was highlighted by continued execution on our growth plans through a positive FID on Train 6 at Sabine Pass, continued commercial innovation with the long-term IPM contract with Apache, and continued financial discipline, reflected in the capital allocation framework we announced during the quarter,” Cheniere CEO Jack Fusco said. “LNG volumes in our portfolio, via early completion of trains and excellent operational performance at both Sabine Pass and Corpus Christi, continue to help offset relative softness in short-term LNG market pricing.”

At Corpus Christi, Train 2 exported its first commissioning cargo in June and substantial completion is expected in 3Q 2019. Train 3 is listed as 62.4% complete, with substantial completion expected in the second half of 2021, while Train 6 at Sabine Pass is listed as 32.4% complete, with substantial completion expected in the first half of 2023.