Cheniere Reports USD 135.2 Million Net Loss in Q4

Cheniere Energy reported a net loss  of $135.2 million for the three months ended December 31, 2013, compared to a net loss of $94.3 million for the comparable 2012 period. 

For the year ended December 31, 2013, Cheniere reported a net loss attributable to common stockholders of $507.9 million, compared to a net loss of $332.8 million during the corresponding period of 2012. 

Liquefaction Projects Update

Sabine Pass Liquefaction Project

Through Cheniere Partners the company is developing up to six Trains, each with a nominal production capacity of approximately 4.5 mtpa, at the Sabine Pass LNG terminal adjacent to the existing regasification facilities. Cheniere has received Federal Energy Regulatory Commission (FERC) and Department of Energy (DOE) approvals for Trains 1 through 4, and the company has filed all required regulatory applications with the FERC and DOE to develop Trains 5 and 6.

The Trains are in various stages of development.

• Construction on Trains 1 and 2 began in August 2012, and as of January 31, 2014, the overall project for Trains 1 and 2 was approximately 57.1% complete, which is ahead of the contractual schedule.  Based on the company’s current construction schedule, Cheniere anticipates that Train 1 will produce LNG by late 2015.
• Construction on Trains 3 and 4 began in May 2013, and as of January 31, 2014, the overall project for Trains 3 and 4 was approximately 21.6% complete.  To date, soil stabilization has been completed and pile driving, the next critical path item, is underway. Cheniere expects Trains 3 and 4 to become operational in late 2016 and 2017, respectively.
• Cheniere continues to make progress with the development of Trains 5 and 6.  To date Cheniere  completed two LNG SPAs for approximately 3.75 mtpa in aggregate of LNG volumes that commence with the date of first commercial delivery for Train 5.  In September 2013, the company has filed a complete application with the FERC.  Cheniere received authorizations from the DOE to export 503 Bcf of LNG volumes from Trains 5 and 6 to FTA countries.  Non-FTA authorization is pending.

Corpus Christi Liquefaction Project

The company continues to make progress on the commercialization and development of the Corpus Christi Liquefaction Project, which is being designed for up to three Trains with expected aggregate nominal production capacity of approximately 13.5 mtpa of LNG.

• In December 2013, Cheniere entered into an SPA with Pertamina under which Pertamina has agreed to purchase approximately 0.8 mtpa of LNG commencing with the date of first commercial delivery of Train 1 of the Corpus Christi Liquefaction Project. Additionally, the company entered into two lump sum turnkey contracts for the engineering, procurement and construction of the Trains and related facilities.
• Cheniere received authorization from the DOE to export up to 767 Bcf per year of domestically produced LNG to FTA countries from the Corpus Christi Liquefaction Project.  Authorization to export LNG to non-FTA countries is pending.
• In February 2014, Cheniere received a scheduling notice from the FERC under which the FERC has scheduled the issuance of the FERC staff’s final Environmental Impact Statement (“FEIS”) for no later than October 8, 2014. In addition, this notice from the FERC alerted all other agencies issuing federal authorizations of the requirement to complete all necessary reviews and to reach a final decision on the request for a federal authorization within 90 days following issuance of the FEIS or no later than January 6, 2015.

Cheniere will contemplate making a final investment decision to commence construction of the Corpus Christi Liquefaction Project based upon, among other things, entering into acceptable commercial arrangements, receiving all regulatory approvals and obtaining financing.

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LNG World News Staff, February 20, 2014; Image: Cheniere