Profile: Cheniere Energy Inc (LNG.A)
12 Feb 2016
Cheniere Energy, Inc., incorporated on March 25, 1983, is an energy company primarily engaged in Liquefied natural gas (LNG) related businesses. The Company operates through two segments: LNG terminal business, and LNG and natural gas marketing business The Company owns and operates the Sabine Pass LNG terminal in Louisiana through its ownership interest in and management agreements with Cheniere Energy Partners, L.P. (Cheniere Partners), which is a publicly traded limited partnership. The Company owns 100% of the general partner interest in Cheniere Partners and 80.1% of Cheniere Energy Partners LP Holdings, LLC (Cheniere Holdings), which is a publicly traded limited liability company that owns a 55.9% limited partner interest in Cheniere Partners.
The Sabine Pass LNG terminal is located on the Sabine Pass deepwater shipping channel less than four miles from the Gulf Coast. The Sabine Pass LNG terminal has operational regasification facilities owned by Cheniere Partners’ wholly owned subsidiary, Sabine Pass LNG, L.P. (Sabine Pass LNG) that includes existing infrastructure of five LNG storage tanks with capacity of approximately 16.9 billion cubic feet equivalent (Bcfe), two docks that can accommodate vessels with nominal capacity of up to 266,000 cubic meters and vaporizers with regasification capacity of approximately 4.0 billion cubic feet per day (Bcf/d). Cheniere Partners is developing and constructing natural gas liquefaction facilities (Sabine Pass 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). Cheniere Partners also owns the 94-mile Creole Trail Pipeline through a wholly owned subsidiary, Cheniere Creole Trail Pipeline, L.P. (CTPL), which interconnects the Sabine Pass LNG terminal with a number of large interstate pipelines.
The Company is developing a second natural gas liquefaction and export facility, and related pipeline near Corpus Christi, Texas (Corpus Christi Liquefaction Project) through wholly owned subsidiaries Corpus Christi Liquefaction, LLC (Corpus Christi Liquefaction) and Cheniere Corpus Christi Pipeline, L.P. (Cheniere Corpus Christi Pipeline), respectively. The Company’s subsidiary, Cheniere Marketing, LLC (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 sale and purchase agreements (SPAs). Cheniere Marketing has SPAs with Sabine Pass Liquefaction and Corpus Christi Liquefaction to purchase LNG produced by the Sabine Pass Liquefaction Project and the Corpus Christi Liquefaction Project. It is engaged in constructing and commencing operation of Sabine Pass Liquefaction’s Trains.
LNG Terminal Business
The Company is focused on the development of two LNG terminal projects: the Sabine Pass LNG terminal in western Cameron Parish, Louisiana, less than four miles from the Gulf Coast on the deepwater ship channel, and the Corpus Christi LNG terminal near Corpus Christi, Texas. The Company is operating regasification facilities at the Sabine Pass LNG terminal, and is developing and constructing the Sabine Pass Liquefaction Project, which is owned through Cheniere Partners. It owns 100% of the general partner interest in Cheniere Partners and 80.1% of Cheniere Holdings, which owns a 55.9% limited partner interest in Cheniere Partners. The Company owns a 100% interest in the Corpus Christi Liquefaction Project.
The Sabine Pass LNG terminal has operational regasification capacity of approximately four Bcf/d and aggregate LNG storage capacity of approximately 16.9 Bcfe. Approximately two Bcf/d of the regasification capacity at the Sabine Pass LNG terminal is reserved under two long-term third-party agreements (TUAs). Each of Total Gas & Power North America, Inc. (Total) and Chevron U.S.A. Inc. (Chevron) has reserved approximately one Bcf/d of regasification capacity at the Sabine Pass LNG terminal. The remaining approximately two Bcf/d of capacity has been reserved under a TUA by Sabine Pass Liquefaction. The Sabine Pass Liquefaction Project is being developed and constructed at the Sabine Pass LNG terminal adjacent to the existing regasification facilities.
Sabine Pass Liquefaction has the following third-party SPAs: BG Gulf Coast LNG, LLC (BG), Gas Natural Aprovisionamientos SDG S.A. (Gas Natural Fenosa), Korea Gas Corporation (KOGAS), GAIL (India) Limited (GAIL) and Centrica plc (Centrica). The Corpus Christi LNG Terminal is located near Corpus Christi, Texas. Corpus Christi Liquefaction had the following third-party SPAs: Endesa Generacion, S.A., Iberdrola S.A., Gas Natural Fenosa LNG SL, Woodside Energy Trading Singapore Pte Ltd, PT Pertamina (Persero), Electricite de France, S.A. and EDP Energias de Portugal S.A.
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. Cheniere Marketing purchases, transports and unloads commercial LNG cargoes into the Sabine Pass LNG terminal. Cheniere Marketing and its wholly owned subsidiaries has the following rights and obligations to support its business: the right to deliver cargoes to the Sabine Pass LNG terminal during the construction of the Sabine Pass Liquefaction Project in exchange for payment of 80% of the expected gross margin from each cargo to Cheniere Energy Investments, LLC (Cheniere Investments), a wholly owned subsidiary of Cheniere Partners; the right to purchase, at Cheniere Marketing’s option, any LNG produced by Sabine Pass Liquefaction; the right to purchase, at Cheniere Marketing’s option, any LNG produced by Corpus Christi Liquefaction not required for other customers, and three LNG vessel time charters with subsidiaries of two ship owners, Dynagas, Ltd. (Dynagas) and Teekay LNG Operating LLC (Teekay).
Cheniere Energy Inc
700 Milam St Ste 1900
HOUSTON TX 77002-2806
Company Web Links
- Cheniere Energy scraps its crude trading desk
- Cheniere votes to replace CEO Souki, appoints Shear as interim head
- Hedge funds' favorite stocks lag broader market: Goldman data
- Hedge funds' favorite stocks lag broader market -Goldman data
- LNG tanker steams toward U.S. Sabine Pass for inaugural loading