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    US Cheniere Reports Record Q4 Net Income

Summary

New LNG trains placed in service ahead of schedule

by: Dale Lunan

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

US Cheniere Reports Record Q4 Net Income

US LNG developer Cheniere Energy said February 25 it had record net income in Q4 2019 of $939mn, up from $67mn in the comparable year-earlier period, while pre-tax earnings (Ebitda) rose to $987mn from $634mn.

Net income for all of 2019 increased to $648mn from $471mn while Ebitda rose 38% year-on-year to $2.95bn.

“2019 was an incredible year for Cheniere as we achieved significant milestones in securing our growth, exhibiting execution and operating excellence, demonstrating capital discipline, and further solidifying our position as a global leader in LNG,” Cheniere CEO Jack Fusco said.

Highlights for the year, he said, included the positive final investment decision on Train 6 at Cheniere’s Sabine Pass terminal in Louisiana, achieving major commercial and regulatory milestones for the Corpus Christi Stage 3 project in Texas and placing three liquefaction trains into service within budget and, on average, more than nine months ahead of schedule.

During the fourth quarter, the company exported 130 LNG cargoes, representing 462 TBtu, up from 80 cargoes (285 TBtu) in the comparable 2018 period. Nine cargoes were in-transit at the end of the year.

Train 6 at the Sabine Pass complex is under construction, headed towards expected completion in the first half of 2023. When all six trains are complete, the aggregate nominal production capacity at Sabine Pass will be about 27mn mt/yr.

At the Corpus Christi terminal in Texas, two trains are now in operation, with a third under construction, for a total production capacity of about 15mn mt/yr. Train 3 is expected to reach substantial completion in the first half of 2021, Cheniere said. Cheniere’s application to develop its Stage 3 expansion project at Corpus Christi was approved by the US Federal Energy Regulatory Commission in November 2019, and construction is expected to begin once an EPC contract has been signed, additional commercial arrangements have been finalised and adequate financing has been obtained. The seven mid-scale liquefaction trains at Stage 3 will provide about 10mn mt/yr of LNG production capacity.