US LNG Developer Cheniere Reports Higher 3Q Loss

Cheniere Energy, which is developing liquefaction terminals in Louisiana and Texas, said November 14 it had a 3Q 2017 net loss of $289mn, up from a $101mn net loss in 3Q 2016.

The company attributed the increased loss to the amortization of the beneficial conversion feature on Class B units of Cheniere Energy Partners. Those features ended when the units were converted to common shares in August, and will no longer impact Cheniere’s financial results.

“I'm pleased to report our strong third quarter results, which are a product of continued execution and operational excellence across the company,” Cheniere CEO Jack Fusco said. “In addition, we are again increasing our full year 2017 guidance and are introducing our guidance for full year 2018.”

The third quarter, Cheniere said, was highlighted by the commencement of its long-term contract with Spanish utility Natural Gas Fenosa and the commissioning of Train 4 (4.5mn tons/year) at the Sabine Pass terminal in Louisiana. Train 5 (also 4.5mn tons/year) is currently under construction, with substantial completion targeted for the second half of 2019, while Train 6 has received regulatory approval and is being commercialized prior to a final investment decision (FID).

In Texas, where Cheniere is developing a five-train, 22.5mn tons/year liquefaction terminal at Corpus Christi, Trains 1 and 2 are under construction, with substantial completion expected in 2019. Train 3 has received regulatory approval, and is undergoing commercialization prior to FID.

Revenue in 3Q 2017 increased to $1.4bn from $465mn year-over-year as exported volumes increased to 160 trillion Btu from 62 trillion Btu. Through nine months this year, Cheniere has exported 482 trillion Btu in 135 cargoes, up from 114 trillion Btu in 33 cargoes through the first nine months of 2016.

Since initial deliveries from Sabine Pass began in 2016, Cheniere has delivered more than 210 cargoes and 750 trillion Btu of LNG to 25 countries.

Dale Lunan