Cheniere Sees Higher Q3 Loss

US LNG infrastructure developer Cheniere Energy said November 6 it had a net loss of $463mn in Q3 2020, up from a net loss of $318mn in the same period last year. Operating earnings (consolidated adjusted Ebitda) slipped to $477mn from $694mn.

A combination of demand impacts associated with Covid-19 mitigation measures and two major hurricanes in the US Gulf Coast area dramatically reduced the number of LNG cargoes shipped from Cheniere’s two liquefaction terminals at Sabine Pass in Louisiana and Corpus Christi, Texas. A total of 55 cargoes, representing 193 trillion Btu, were exported in Q3 this year, against 108 cargoes and 383 trillion Btu in the same period a year ago.

Still, Cheniere said, it coordinated across its liquefaction facilities and with its counterparties to ensure all commercial obligations were fulfilled in August and September, despite the impacts of Hurricane Laura in late August, which prompted a temporary suspension of operations at Sabine Pass. A second hurricane, Zeta, also came ashore in October near the Sabine Pass terminal.

“We are once again delivering strong results in the face of challenges, including two major hurricanes which recently impacted the Sabine Pass area, further cementing our reputation for resilience and operational excellence,” Cheniere CEO Jack Fusco said. ““As we look ahead to 2021, we expect the global LNG market to continue rebalancing and look forward to the completion of Train 3 at Corpus Christi ahead of schedule and within budget.”

Subsequent to the third quarter, feed gas was introduced to Train 3, and Cheniere now expects substantial completion – a milestone in the engineering, procurement and contsruction process – in Q1 2021. At Sabine Pass, Train 6 is about 71% complete, with substantial completion expected in H2 2022.