QUOTE AND NEWS
DailyFinance  Apr 11  Comment 
HOUSTON, TX -- (Marketwired) -- 04/11/14 -- With greater emphasis on the value of North American natural gas to diversify international markets from Russian supplies, buyers and sellers of American LNG are more inclined to proceed to full sales...
Financial Times  Apr 10  Comment 
Chief executive Charif Souki says that the idea of his company’s exports alone liberating Europe from Russia’s Gazprom is ‘nonsense’
Benzinga  Apr 8  Comment 
In a report published Tuesday, Morgan Stanley analyst Stephen J. Maresca reiterated an Overweight rating on Cheniere Energy (NYSE: LNG), and raised the price target from $60.00 to $78.00. In the report, Morgan Stanley noted, “We left...
newratings.com  Apr 7  Comment 
WASHINGTON (dpa-AFX) - Cheniere Energy, Inc. (LNG) announced that its subsidiary, Corpus Christi Liquefaction, LLC has entered into a liquefied natural gas or LNG sale and purchase agreement or SPA with Endesa S.A. under which Endesa has agreed to...
SeekingAlpha  Apr 4  Comment 
By SA Editor Miriam Metzinger: Stocks discussed on the Lightning Round segment of Jim Cramer's Mad Money Program, Thursday April 3. Bullish Calls: Suncor (SU): "I like the oil sands. I like Canada. The stock is in favor, and it is going...
Reuters  Apr 3  Comment 
(Adds start date of LNG supplies from 2019, detail, background)     
Benzinga  Apr 3  Comment 
In a report published Thursday, Credit Suisse analyst Abhiram Rajendran downgraded the rating on Cheniere Energy (NYSE: LNG) from Outperform to Neutral, but raised the price target from $50.00 to $65.00. In the report, Credit Suisse noted,...
newratings.com  Apr 2  Comment 
WASHINGTON (dpa-AFX) - Houston-based energy company Cheniere Energy, Inc.(LNG) Wednesday said its unit Corpus Christi Liquefaction, LLC has signed a 20 year sale and purchase agreement or SPA with Endesa Generacion, S.A (ELE) to sell about 1.5...
SeekingAlpha  Feb 28  Comment 
By Sean Weston: Liquefied Natural Gas (often abbreviated as LNG) is modified natural gas, cooled down to negative 161 degrees Celsius, and transformed to a liquid from vapor. This transformation allows for the volume of the gas to be reduced by...
OilVoice  Feb 21  Comment 
Cheniere Energy Inc. NYSE MKT LNG reported a net loss attributable to common stockholders of 135.2 million or 0.61 per share basic and diluted for the three months ended December 31 2013 c




 

Cheniere Energy (NYSE: LNG) is engaged primarily in the development of a liquified natural gas, or LNG, receiving terminal business and related LNG business opportunities centered on the U.S. Gulf Coast. The company is also engaged in oil and gas exploration, development and exploitation activities in the Gulf of Mexico. LNG is headquartered in Houston, Texas.

Industry Overview

The emergence of America as an LNG importer in the next few years will trigger fundamental changes in the LNG business. Several developments in the LNG trade over the past year are evidence that a pradigm shift is already underway, and will become even more pronounced as large new LNG projects start production.[1]

LNG is natural gas that, through a refrigeration process, has been reduced to a liquid state, which represents, approximately 1/1600th of its gaseous volume. The liquefication of natural gas into LNG allows it to be shipped to economically from areas of the world where natural gas is abundant and inexpensive to produce to other areas where natural gas demand and infrastructure exist to economically justify the use of LNG.[2]

Trends and Forces

Future looking bright for LNG

Cheniere Energy (LNG) has had a spotty record of expectations versus performance over the past few years. This liquefied natural gas terminal, exploration and transmission company operating primarily in the Deep South and Gulf of Mexico is ready to lurch higher, maybe even doubling it's stock price into 2010. This line of thought seems to be contrary to most analysts. In fact, the stock has performed poorly for months, down from $43.60 per share in July to a recent quote of $28.75.

However, Global liquefaction growth is poised for acceleration. Global liquefied natural gas supply growth over the next five years will likely reach 15% annually (to hopefully match demand) which is double the growth rate of the past five years. Environmental Greens love liquefied natural gas as an alternative energy source that can stand on its own without a subsidy.

Increasing ability to provide internationally

US imports of liquefied natural gas could triple by 2010 and LNG has a large and well-placed storage capacity to hold this commodity during seasonal price adjustments (more profit for Cheniere Energy). As liquefied natural gas demand is rising quickly internationally, the era of this gas product being cheap is over, based upon elementary supply and demand studies. Cheniere is poised to profit from this, as their large expenditure on infrastructure in all areas of receiving and transporting liquefied natural gas is close to completion. Asia and Europe have liquefied natural gas challenges that are not being addressed - Asia has little storage capacity when viewed on both an absolute basis and as a percentage of demand, and Europe's liquefied natural gas reservoir is depleted and poorly managed (Russia's output from Gazprom was actually down last year) and the EU market structure for the commodity is overly regulated, discouraging infrastructure and storage initiatives,thus Cheniere Energy will store the product and market it to the EU and Asia at a profit.

Seasonally, Cheniere has the ability to store the gas and sell it at high price points worldwide and in the US, generally in the first and fourth quarter, as the commodity is driven by heating needs (except in Japan, where it is steady year around). In effect, Cheniere acts as a sponge, absorbing seasonally high output during periods of low demand and then squeezing it out at peak.

In addition to developing, constructing owning and operating a network of three large liquefied natural gas receiving terminals, Cheniere Energy owns natural gas pipelines, a business to market liquefied natural gas company and is engaged in the Gulf of Mexico prospecting for oil and gas.[3]


Notes

  1. LNG
  2. LNG
  3. The long case for Cheniere Energy

References
1. 2006 Annual Report, p.8
2. 2006 Annual Report, p.23

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