LNG Developer Cheniere Reports Strong Q1
US LNG developer Cheniere Energy said April 30 its Q1 2020 net income was 166% higher year-on-year, at $375mn versus $141mn, while pre-tax earnings more than doubled, to $1.04bn from $650mn. Most of its capacity is presold on a liquefy-or-pay basis, guaranteeing income whatever the circumstances, although it has reserved some capacity for its own use.
“The first quarter of 2020 was defined by unprecedented circumstances, and our focus at Cheniere has been to protect the health and safety of our workforce, ensure continuity of construction and operations to deliver on our obligations to our customers, and to support the communities where we live and work with assistance needed to provide critical services,” CEO Jack Fusco said. ““Those efforts contributed to our ability to deliver strong financial results for the first quarter. We have built a strong and resilient business, one capable of withstanding volatility in both energy and financial markets.”
During the quarter, Cheniere exported 128 LNG cargoes from its two liquefaction terminals in Louisiana and Texas, while eight cargoes exported and sold on a delivered basis were in transit.
At its Sabine Pass terminal in Louisiana, Train 6 is under construction and was 54% complete as of March 31, with substantial completion expected in H1 2023. Train 3 at the Corpus Christi project in Texas was nearly 84% complete at March 31, and substantial completion is expected in H1 2021.
And at its Stage 3 project at Corpus Christi – seven mid-scale trains with a total capacity of 10mn mt/yr – the company expects to begin construction “upon, among other things, entering into an engineering, procurement, and construction contract and additional commercial agreements, and obtaining adequate financing.”