Cheniere Moves to Black in 2018

US LNG developer Cheniere Energy said February 26 it had net income of $471mn in 2018, reversing a $393mn loss in 2017. Net income in 4Q 2018, however, was off 47%, at $67mn compared to $127mn in 4Q 2017.

Revenues in 2018 increased to $7.99bn from $5.6bn, driven largely by the timing of the completion of trains at Sabine Pass, while 4Q 2018 revenue rose to $2.38bn from $1.75bn, driven by higher LNG prices and additional production from the Sabine Pass terminal in Louisiana.

The company shipped 273 cargoes of LNG in 2018, up from 205 in 2017, as volumes exported rose to 976 TBtu from 734 TBtu. Commissioning cargoes from Train 5 of Cheniere’s Sabine Pass terminal and Train 1 of its Corpus Christi terminal in Texas were exported in November 2018 and December 2018, respectively.

At Sabine Pass, Train 5 was 99.7% complete as at December 31, 2018 and is expected to be substantially complete in 1Q 2019. Limited notice to proceed on Train 6 was also issued in 2018.

At Corpus Christi, Trains 1 and 2 are in the commissioning stage, with Train 1 expected to reach substantial completion in 1Q 2019, followed by Train 2 in 2H 2019. Train 3 is under construction, and is expected to reach substantial completion in 2H 2021.

“2018 was an exceptional year for Cheniere, underscored by our positive final investment decision on Corpus Christi Train 3, the execution of seven long-term LNG SPAs for more than 7mn mt/yr of LNG, and financial results at or above the top end of our guidance ranges for the year,” Cheniere CEO Jack Fusco said.

The company is now focused on progressing Train 6 at Sabine Pass, Fusco said, and a positive final investment decision is expected in the coming months.