Cheniere reports USD 89.6 million net loss

U.S. LNG player Cheniere Energy reported a net loss of $89.6 million for the third quarter, compared to a net loss of $100.8 million for the comparable 2013 period.

For the nine months ended September 30, Cheniere reported a net loss of $389.3 million, compared to a net loss of $372.7 million during the corresponding period of 2013.

Sabine Pass liquefaction project

Cheniere is  developing up to six natural gas liquefaction trains, each with an expected nominal production capacity of approximately 4.5 mtpa, at the Sabine Pass LNG terminal adjacent to the existing regasification facilities.

The Trains are in various stages of development.

• Construction on Trains 1 and 2 began in August 2012, and as of September 30, 2014, the overall project for Trains 1 and 2 was approximately 76% complete, which is ahead of the contractual schedule. Based on the current construction schedule, Cheniere anticipates that Train 1 will produce LNG as early as late 2015.
• Construction on Trains 3 and 4 began in May 2013, and as of September 30, 2014, the overall project for Trains 3 and 4 was approximately 43% complete, which is also ahead of the contractual schedule. Cheniere expects Trains 3 and 4 to become operational in late 2016 and 2017, respectively.
• Trains 5 and 6 are under development. Cheniere has entered into SPAs for approximately 3.75 mtpa in aggregate that commence with the date of first commercial delivery for Train 5. The company has received authorizations from the U.S. Department of Energy to export 503 Bcf per year of LNG volumes from Trains 5 and 6 to free trade agreement countries. Authorization to export LNG to non-FTA countries is pending. Federal Energy Regulatory Commission authorization is also pending.

Cheniere said it will contemplate making a final investment decision to commence construction on Trains 5 and 6 based upon, among other things, entering into acceptable commercial arrangements, receiving all regulatory approvals and obtaining financing.

Corpus Christi liquefaction project

Cheniere said that it 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.

• To date, the company has entered into SPAs aggregating approximately 6.9 mtpa of LNG volumes commencing with Trains 1 and 2 and 0.77 mtpa of LNG volumes commencing with Train 3.
• Cheniere has received authorization from the DOE to export up to 767 Bcf per year of domestically produced LNG to FTA countries. Authorization to export LNG to non-FTA countries is pending. In October 2014, the FERC issued the Final Environmental Impact Statement, which is pending final approval. Cheniere expects to receive remaining regulatory approvals by early 2015.

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Press Release; Image: Cheniere