Profile: Cheniere Energy Inc (LNG.A)
4 Dec 2013
Cheniere Energy, Inc. (Cheniere), incorporated on March 25, 1983, is engaged in liquid natural gas LNG-related businesses. The Company owns and operates the Sabine Pass LNG terminal in Louisiana through its 59.5% ownership interest in and management agreements with Cheniere Energy Partners, L.P. The Company also also own and operate the Creole Trail Pipeline, which interconnects the Sabine Pass LNG terminal with natural gas markets in North America. Approximately one-half of the receiving capacity at the Sabine Pass LNG terminal is contracted to two multinational energy companies.
The Sabine Pass LNG terminal has regasification facilities owned by Cheniere Partners' wholly owned subsidiary, Sabine Pass LNG, L.P. (Sabine Pass LNG), which includes existing infrastructure of five LNG storage tanks with capacity of approximately 16.9 billions of cubic feet equivalent, two docks that can accommodate vessels of up to 265,000 cubic meters and vaporizers with regasification capacity of approximately four billion cubic feet per day Cheniere Partners is developing natural gas liquefaction facilities (the Liquefaction Project) at the Sabine Pass LNG terminal adjacent to the existing regasification facilities through a wholly owned subsidiary, Sabine Pass Liquefaction, LLC (Sabine Pass Liquefaction). The Company operates in two business segments: LNG terminal business and LNG and natural gas marketing business.
LNG Terminal Business
The Company is focused on its development efforts on three LNG terminal projects: Sabine Pass LNG in western Cameron Parish, Louisiana, less than four miles from the Gulf Coast on the deepwater ship channel; Corpus Christi LNG near Corpus Christi, Texas; and Creole Trail LNG at the mouth of the Calcasieu Channel in central Cameron Parish, Louisiana.The Company has constructed and are operating regasification facilities at the Sabine Pass LNG terminal and are developing and constructing the Liquefaction Project, which is owned through Cheniere Partners, in which it holds an approximate 59.5% interest. As of December 31, 2012, the Company owns 100% interests in both the Corpus Christi and Creole Trail LNG terminal projects. In September 2012, Sabine Pass Liquefaction entered into a partial TUA assignment agreement with Total, whereby Sabine Pass Liquefaction will progressively gain access to Total's capacity and other services provided under Total Gas & Power North America, Inc. (Total's) TUA with Sabine Pass LNG.
The Liquefaction Project is being developed at the Sabine Pass LNG terminal adjacent to the existing regasification facilities.The Company has commenced construction of Train 1 and Train 2 and the related new facilities needed to treat, liquefy, store and export natural gas. The Trains are being designed, constructed and commissioned by Bechtel Oil, Gas and Chemicals, Inc. (Bechtel) using the ConocoPhillips Optimized Cascade technology, a technology deployed in numerous LNG projects around the world. Sabine Pass Liquefaction has entered into lump sum turnkey contracts for the engineering, procurement and construction of Train 1 and Train 2 (the EPC Contract (Train 1 and 2)) and Train 3 and Train 4 (the EPC Contract (Train 3 and 4). As contemplated, the proposed Corpus Christi Liquefaction LNG terminal would be designed for up to three Trains with aggregate nominal production capacity up to 15 million metric tons per annum of LNG, have three LNG storage tanks with capacity of 10.1 billions of cubic feet equivalent and two docks that can accommodate vessels of up to 265,000 cubic meters (the Corpus Liquefaction Project).
Cheniere Creole Trail Pipeline, L.P. (Creole Trail), an indirect wholly owned subsidiary of Cheniere, owns the Creole Trail Pipeline, a 94-mile pipeline interconnecting the Sabine Pass LNG terminal with a number of interstate pipelines, including Natural Gas Pipeline Company of America, Transcontinental Gas Pipeline Corporation, Tennessee Gas Pipeline Company, Florida Gas Transmission Company, Texas Eastern Gas Transmission, and Trunkline Gas Company, as well as the intrastate pipeline system of Bridgeline Holdings, L.P.
LNG and Natural Gas Marketing Business
The Company’s wholly owned subsidiary, Cheniere Marketing, is engaged in the LNG and natural gas marketing business and is seeking to develop a portfolio of long-term, short-term and spot LNG purchase and sale agreements, assist Cheniere Investments in negotiating with potential customers to monetize two billion cubic feet per day of regasification capacity at the Sabine Pass LNG terminal to which it has access under the TURA during construction of the Liquefaction Project, and enter into business relationships for the domestic marketing of natural gas imported by Cheniere Marketing as LNG to the Sabine Pass LNG terminal. Cheniere Marketing has been purchasing, transporting and unloading commercial LNG cargoes into the Sabine Pass LNG terminal and has used trading strategies intended to maximize margins on these cargoes. In addition, Cheniere Marketing has continued to enter into various business relationships to facilitate purchasing and selling commercial LNG cargoes.
Cheniere Energy Inc
Suite 800, 700 Milam Street
HOUSTON TX 77002