cheniere energy inc (LNG) Key Developments
Cheniere Issues Notice to Proceed and Commences Construction on First Two Liquefaction Trains at Corpus Christi Liquefaction Project
May 13 15
Cheniere Energy, Inc. announced that its Board of Directors has made a positive Final Investment Decision (FID) with respect to its liquefaction project near Corpus Christi, Texas (the "CCL Project") and has issued a notice to proceed (NTP) to Bechtel Oil, Gas and Chemicals, Inc. (Bechtel) to construct the first two natural gas liquefaction trains. The CCL Project is designed for up to three trains with expected aggregate nominal production capacity of approximately 13.5 million tonnes per annum (mtpa), three LNG storage tanks with capacity of approximately 10.1 Bcfe, two LNG carrier docks and a 22-mile, 48" natural gas supply pipeline. The first train is expected to start operations as early as 2018, with the second train expected to commence operations approximately six to nine months thereafter. Total project costs of approximately $11.5 billion for the first two trains, two LNG storage tanks, one dock and the natural gas supply pipeline will be funded with approximately $3.1 billion of project equity and approximately $8.4 billion of debt. Corpus Christi Holdings, LLC (Corpus Christi Holdings), a wholly owned subsidiary of Cheniere, has closed on its previously announced credit facility (CCL credit facility) for the first two trains totaling approximately $8.4 billion. Subsequent to the close of the CCL credit facility, Cheniere CCH HoldCo II, LLC, a wholly owned subsidiary of Cheniere, has closed on $1.0 billion of the previously announced $1.5 billion aggregate principal amount of 11% Senior Secured Notes due 2025 (the Convertible Notes) with EIG Management Company, LLC. The Convertible Notes, together with the CCL credit facility and an equity contribution of approximately $500 million from Cheniere, complete the financing required to begin developing, constructing and placing into service the first two trains.
Cheniere Energy, Inc. Announces Unaudited Consolidated Earnings Results for First Quarter Ended March 31, 2015
Apr 30 15
Cheniere Energy, Inc. announced unaudited consolidated earnings results for first quarter ended March 31, 2015. For the quarter, the company reported a net loss attributable to common stockholders of $267.7 million, or $1.18 per basic and diluted share compared to a net loss attributable to common stockholders of $97.8 million, or $0.44 per basic and diluted share for the comparable 2014 period. Results include significant items of $231.0 million, compared to $46.8 million for the comparable 2014 period. The significant items for the three months ended March 31, 2015 related to derivative losses due primarily to contingent interest rate derivatives entered into and changes in long-term LIBOR during the period, losses on early extinguishment of debt related to the write-off of debt issuance costs by Sabine Pass Liquefaction, LLC in connection with the refinancing of a portion of its credit facilities in March 2015, and for development expenses primarily for the liquefaction facilities being developed by near Corpus Christi, Texas. Total revenues were $68,369,000 against $67,550,000 a year ago. Loss from operations was $60,998,000 against $47,612,000 a year ago. Loss before income taxes and non-controlling interest was $335,166,000 against $122,253,000 a year ago.
Cheniere Energy Plans to Expand US LNG Exports
Apr 28 15
Cheniere Energy plans to expand its US LNG export business by developing two more major liquefaction trains and mid-scale liquefaction projects. The company previously announced plans to build up to nine major liquefaction trains, with six of those at its Sabine Pass terminal in Louisiana and three at its Corpus Christi project in Texas. A 10th and an 11th train would be built at one of those facilities, but Cheniere officials declined to name the location. Cheniere plans to make a final investment decision (FID) in the second half of 2017 on the two trains, which have an estimated combined cost of $10 billion. They would start operating in 2021-22. Cheniere plans to raise $7.5 billion in debt financing for the trains, with the remaining $2.5 billion to come from equity. It plans to sell long-term liquefaction capacity totaling 7 million t/yr at $3.50/mmBtu to finance the trains. Cheniere's large trains each have baseload capacity of 4.5mn t/yr, equivalent to 621mn cf/d (17.6mn m/d) of gas, and peak capacity of 5 million t/yr. Cheniere is building the first four trains and associated facilities at Sabine Pass at a cost of $13 billion. The first export is scheduled for late this year and all four trains are expected to start operating in late 2017. Cheniere has sold 3.75mn t/yr of capacity at $3/mmBtu from the planned train 5 at Sabine Pass and expects to make an FID on that $4.5 billion project in mid-2015, with operations to begin in 2019. It expects to make an FID on the $3 billion train 6 at Sabine Pass in the second half of 2015 after selling long-term capacity totaling 1.5mn t/yr at $3.50/mmBtu, providing Cheniere with 3mn t/yr of capacity. Train 6 is scheduled to start operating in 2020. Cheniere has sold 7.65mn t/yr of capacity from the planned first two trains at Corpus Christi and plans to make an FID on those trains as soon as it gets all regulatory approvals, which it expects to occur second quarter of 2015. Corpus Christi trains 1-2 are scheduled to start operating in 2019-20. The company wants to sell 2.85mn t/yr of capacity at //$3.50/mmBtu to finance the third train at Corpus Christi, which would give it 1.7mn t/yr of its own supply to market. It expects to make an FID in the second half of 2015 and bring the train on line in 2021.
Cheniere Energy, Inc. Presents at Platts LNG Derivatives & Natural Gas Markets Conference, May-21-2015 11:00 AM
Apr 15 15
Cheniere Energy, Inc. Presents at Platts LNG Derivatives & Natural Gas Markets Conference, May-21-2015 11:00 AM. Venue: Grand Hyatt Singapore, 10 Scotts Road, Singapore 228211, Singapore. Speakers: Nicolas Zanen, VP Asia.
Cheniere Energy Inc. Announces Settlement of Shareholder Class Action Complaint
Mar 23 15
The shareholder class action complaint against Cheniere Energy Inc. and many of its top executives over $2 billion worth of stock awards has been settled. The settlement that came out of Delaware's Court of Chancery said the company wouldn't be able to ask shareholders for additional stock grants before 2017. The settlement also awarded the plaintiffs in the case $5.5 million in fees paid by Cheniere. The complaint alleged that a Feb. 1, 2013, stockholder vote to nearly triple the 2011 incentive plan was improperly counted. The settlement will allow employees to keep the shares already awarded to them, but those that haven't been awarded will undergo a shareholder vote before being approved.