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Cheniere Energy Inc. posts 2014 loss

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LNG Industry,


Cheniere Energy Inc. has reported a net loss attributable to common stockholders of US$158.6 million for the three months ended 31 December 2014, compared to a net loss attributable to common stockholders of US$135.2 million for the corresponding period in 2013.

For the year ended 31 December 2014, Cheniere reported a net loss attributable to common stockholders of US$547.9 million, compared to a net loss attributable to common stockholders of US$507.9 million in 2013.

The results include significant items for the three months and year ended 31 December 2014 of US$44.2 million and US$286.7 million, compared to US$34 million and US$109.1 million for the comparable 2013 periods, respectively. These significant items for 2014 related to development expenses for the Corpus Christi Liquefaction Project, 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 May 2014 and April 2013, and derivative gains (losses) due primarily to changes in long-term LIBOR during the respective periods.

Meanwhile, Cheniere Energy Partners LP Holdings LLC has reported net income of US$4.6 million and US$18.1 million for the three months and year ended 31 December 2014, respectively, compared to US$0.1 million for the three months and period from 29 July 2013 through 31 December 2013, respectively. Results include distributions received from its limited partner interests in Cheniere Energy Partners, L.P.

Cheniere Energy Partners L.P. reported a net loss of US$70.8 million and US$410 million for the three months and year ended 31 December 2014, respectively, compared to a net loss of US$61.3 million and US$258.1 million for the same periods in 2013, respectively.

Sabine Pass Liquefaction Project

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

The LNG trains are in various stages of development:

  • Construction on Trains 1 and 2 began in August 2012, and as of 31 December 2014, the overall project for Trains 1 and 2 was approximately 81% complete, which is ahead of the contractual schedule. Based on the current construction schedule, the company 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 31 December 2014, the overall project for Trains 3 and 4 was approximately 54% complete. The trains should become operational in late 2016 and 2017, respectively.
  • Trains 5 and 6 are under development. Cheniere Energy has entered into sale and purchase agreements (SPAs) for approximately 3.75 million tpy in aggregate that commence with the date of first commercial delivery for Train 5. The company has received authorisations from the DOE to export 503 billion ft3/yr of LNG volumes from Trains 5 and 6 to free trade agreement (FTA) countries. Authorisation to export LNG to non-FTA countries is pending. In December 2014, the FERC published the final Environmental Assessment, and final FERC authorisation is subject to commissioner approvals.

Cheniere Energy has announced that it will contemplate making a final investment decision to commence construction of Train 5 and Train 6 based on, among other things, entering into engineering, procurement and construction (EPC) contracts, entering into acceptable commercial arrangements, receiving all regulatory approvals and obtaining financing.

Corpus Christi Liquefaction Project

Cheniere Energy also announced that it continues to make progress on the commercialisation and development of the Corpus Christi Liquefaction Project, which is being designed for up to three LNG trains with expected aggregate nominal production capacity of approximately 13.5 million tpy of LNG.

To date, it has entered into SPAs aggregating approximately 6.9 million tpy of LNG volumes commencing with Trains 1 and 2, and approximately 1.5 million tpy of LNG volumes commencing with Train 3.

In December 2014, Cheniere Energy received authorisation from the FERC to site, construct, and operate the Corpus Christi Liquefaction Project. It has also received authorisation from the DOE to export up to approximately 767 billion ft3/yr of domestically produced LNG to FTA countries. Authorisation to export LNG to non-FTA countries is pending. The company expects to receive the remaining regulatory approvals during the first half of 2015.


Adapted from press release by

Read the article online at: https://www.lngindustry.com/liquefaction/23022015/cheniere-energy-inc-posts-2014-loss-296/


 

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