US Cheniere Shows Small Q4 Loss
US LNG developer Cheniere Energy said February 24 it had a small Q4 2020 net loss of $194mn but recorded a 7% increase in operating earnings (Ebitda) in the quarter, to $1.05bn from $987mn in Q4 2019, when net earnings reached $939mn.
Net loss for 2020 was even smaller year on year, at $89mn compared with net income of $648mn in 2019, but Ebitda rose 34%, to $3.96bn from $2.95bn in 2019.
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The net losses were largely attributable to increased non-cash losses from changes in the fair market value of commodity and foreign exchange derivatives.
“After a year in which the unprecedented became ordinary course, I am extremely proud to report fourth quarter and full year 2020 financial results that place us solidly within our original, unchanged consolidated adjusted Ebitda guidance range and above our distributable cash flow guidance range for the year,” Cheniere CEO Jack Fusco said. “We accomplished this while successfully managing a full spectrum of challenges last year, from a global health crisis and its wide-ranging effects, to record low LNG market pricing, and two major hurricanes making landfall near our infrastructure.”
The mid-February polar vortex weather event in Texas had no material impact on Cheniere’s assets or operations, Fusco said. The company worked with state and local officials and its customers and suppliers to mitigate the impacts of Winter Storm Uri while also turning critically-needed gas supplies back into the state system to help restore services.
As of February 19, Cheniere had shipped about 1,425 LNG cargoes totalling more than 95mn mt of LNG from its two liquefaction projects, Sabine Pass LNG in Louisiana and Corpus Christi Liquefaction in Texas.
At Sabine Pass, five trains totalling 25mn mt/yr of liquefaction capacity are operating, while a sixth 5mn mt/yr train is under construction, with substantial completion expected in the second half next year.
At Corpus Christi, two 5mn mt/yr trains are operating and a third is in the commissioning stage, with substantial completion expected in Q1 2021. A 10mn mt/yr expansion at Corpus Christi, consisting of seven mid-scale trains, is fully permitted but awaiting an engineering, procurement and construction contract, additional commercial agreements and the conclusion of adequate financing arrangements.
Carbon certification
In a separate announcement also February 24, Cheniere said it would begin providing its LNG customers with greenhouse gas (GHG) emissions data associated with each of their cargoes produced at Sabine Pass and Corpus Christi, starting in 2022.
The so-called cargo emissions tags (CE Tags) are designed to enhance environmental transparency by quantifying estimated GHG emissions of a cargo from the wellhead to the cargo delivery point.
“We believe significantly enhanced data-driven emissions transparency will support Cheniere, our customers and our suppliers as we work to identify tangible opportunities to quantify and improve environmental performance,” Fusco said. “Cheniere will continuously work to improve the data incorporated in the CE Tags with the ultimate goal of providing dynamic GHG emissions data.”