- Cheniere Energy (LNG +0.8%) says it expects to make a final investment decision next year on a planned third liquefaction train at the Corpus Christi LNG export terminal in Texas.
- Cheniere is building two trains and associated facilities at Corpus Christi for $11B, with each unit having peak capacity of 5M tons/year or 694M cf/day of gas; the two-train project is 72% complete and scheduled to start operating in 2019.
- CEO Jack Fusco said in yesterday's earnings conference call he is "guardedly optimistic" that last week's announced offtake agreement with China could be finalized early next year, but the deal is not necessary for Corpus Christi's third train to move forward.
- Cheniere believes it can secure more customers for Train 3 primarily because oil prices have started to climb and spot LNG prices and Asian demand have been higher than most analysts expected, but the spot market is not liquid enough to finance long-term deals, Fusco said.
- Cheniere says it delivered six cargoes from Sabine Pass to Europe in Q3, but all went to premium southern European markets.
- Now read: Seth Klarman's Baupost Group - The Margin Of Safety Portfolio
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