Salem Radio Network News Wednesday, September 22, 2021

Business

Cheniere sees Louisiana Sabine 6 LNG unit on in H1 2022

(Reuters) -U.S. liquefied natural gas (LNG) company Cheniere Energy Inc said on Thursday the sixth train at its Sabine Pass export plant in Louisiana was about 89.6% complete and was still expected to enter commercial service in the first half of 2022.

Energy analysts said they expect the unit to start producing first LNG in test mode later this year.

Cheniere, the biggest buyer of natural gas in the United States, said it also continues to develop the Stage 3 expansion at its Corpus Christi LNG export plant in Texas.

“We expect to commence construction of the Corpus Christi Stage 3 project upon, among other things, entering into an engineering, procurement, and construction contract and additional commercial agreements, and obtaining adequate financing,” the company said as part of its second quarter earnings release.

Cheniere reported consolidated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $1.0 billion and $2.5 billion for the three and six months ended June 30, respectively.

The company also reported distributable cash flow of approximately $340 million and $1.09 billion for the second quarter and first six months of 2021, respectively, an increase of approximately 30% over the first half of 2020.

It posted a net loss of $329 million for the second quarter.

The company said it was increasing full year 2021 consolidated adjusted EBITDA guidance to $4.6-$4.9 billion and full year 2021 distributable cash flow guidance to $1.8-$2.1 billion due primarily to improved LNG market margins and an increase in forecasted LNG production.

Each of Cheniere’s nine liquefaction trains, including Sabine 6, can produce about 5 million tonnes per annum (MTPA) of LNG, or 0.66 billion cubic feet per day of natural gas.

The Corpus Stage 3 expansion is designed to produce over 10 MTPA of LNG.

(Reporting by Scott DiSavino; editing by Jonathan Oatis and Emelia Sithole-Matarise)

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