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Released May 05, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Cheniere Energy Incorporated (NYSE:LNG) (Houston, Texas) reported Thursday first-quarter 2017 net income of $54 million, a massive swing from the $321 million loss that it incurred a year earlier. During the just-ended quarter, Cheniere loaded 43 liquefied natural gas (LNG) cargoes from its Sabine Pass terminal in Louisiana, and began production and shipment of cargoes from its new Train 3 production line. Industrial Info is tracking 18 active Cheniere projects worth more than $38 billion.
The cargoes were sent to 16 countries. As of April, LNG from Sabine Pass had reached 20 of the 39 LNG importing countries around the world, the company said. Poland's state-owned PGNiG SA recently reported it bought a spot LNG cargo from the Sabine Pass terminal for delivery in June, marking the first shipment of LNG to northern Europe since Sabine Pass started exports more than a year ago.
"With the completion of Train 3 at Sabine Pass, Cheniere became the largest consumer of natural gas in the United States," Chief Executive Officer Jack Fusco said during the company's earnings presentation. For related information, see April 3, 2017, article - Cheniere Looks to Future After Sabine Pass LNG 3 Completion.
Fusco added he expects the 4.5 million-ton-per-year Train 4 at Sabine Pass to be completed in the second half of this year. Train 5 is still under construction, and Train 6 remains in the planning and engineering stages.
At Cheniere's Corpus Christi site, construction of trains 1 and 2 is 30.7% complete, with completion expected in the first and second half of 2019, respectively.
Fusco continued to stress the cost advantages of Cheniere's brownfield projects. "Our sites have distinct advantages to greenfield sites, as we can leverage our sites, utilities, storage, marine and other key pieces of in-place infrastructure to drive efficiency cost savings."
Cheniere plans to build at least three LNG trains at Corpus Christi. Trains 1, 2 and 3 at the facility each will have a production capacity of 4.5 million tons per year, and all three will have a combined investment value of $14 billion. "We think the Corpus [Train] 3 will be the lowest-cost LNG expansion project on the Gulf Coast," Fusco said.
The increase in net income for the first quarter was primarily due to increased income from operations and decreased derivative loss, Cheniere reported. Revenues totaled $1.2 billion for the just-ended first quarter, compared with just $69 million in first-quarter 2016.
Another highlight cited by Cheniere for first-quarter 2017 was the signing of precedent agreements by its subsidiary, Midship Pipeline Company, LLC, to support construction of a 200-mile interstate natural gas pipeline with expected capacity of 1.0 billion cubic feet per day (Bcf/d), to connect new production in the Anadarko Basin to Gulf Coast markets. Industrial Info is tracking $651 million in active projects related to the Midship Pipeline. For related information, see March 20, 2017, article - Cheniere Inks Contracts for Construction of Midship Natural Gas Pipeline.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The cargoes were sent to 16 countries. As of April, LNG from Sabine Pass had reached 20 of the 39 LNG importing countries around the world, the company said. Poland's state-owned PGNiG SA recently reported it bought a spot LNG cargo from the Sabine Pass terminal for delivery in June, marking the first shipment of LNG to northern Europe since Sabine Pass started exports more than a year ago.
"With the completion of Train 3 at Sabine Pass, Cheniere became the largest consumer of natural gas in the United States," Chief Executive Officer Jack Fusco said during the company's earnings presentation. For related information, see April 3, 2017, article - Cheniere Looks to Future After Sabine Pass LNG 3 Completion.
Fusco added he expects the 4.5 million-ton-per-year Train 4 at Sabine Pass to be completed in the second half of this year. Train 5 is still under construction, and Train 6 remains in the planning and engineering stages.
At Cheniere's Corpus Christi site, construction of trains 1 and 2 is 30.7% complete, with completion expected in the first and second half of 2019, respectively.
Fusco continued to stress the cost advantages of Cheniere's brownfield projects. "Our sites have distinct advantages to greenfield sites, as we can leverage our sites, utilities, storage, marine and other key pieces of in-place infrastructure to drive efficiency cost savings."
Cheniere plans to build at least three LNG trains at Corpus Christi. Trains 1, 2 and 3 at the facility each will have a production capacity of 4.5 million tons per year, and all three will have a combined investment value of $14 billion. "We think the Corpus [Train] 3 will be the lowest-cost LNG expansion project on the Gulf Coast," Fusco said.
The increase in net income for the first quarter was primarily due to increased income from operations and decreased derivative loss, Cheniere reported. Revenues totaled $1.2 billion for the just-ended first quarter, compared with just $69 million in first-quarter 2016.
Another highlight cited by Cheniere for first-quarter 2017 was the signing of precedent agreements by its subsidiary, Midship Pipeline Company, LLC, to support construction of a 200-mile interstate natural gas pipeline with expected capacity of 1.0 billion cubic feet per day (Bcf/d), to connect new production in the Anadarko Basin to Gulf Coast markets. Industrial Info is tracking $651 million in active projects related to the Midship Pipeline. For related information, see March 20, 2017, article - Cheniere Inks Contracts for Construction of Midship Natural Gas Pipeline.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
