|Bid||44.27 x 900|
|Ask||47.00 x 800|
|Day's Range||43.61 - 44.51|
|52 Week Range||32.55 - 49.30|
|Beta (3Y Monthly)||1.08|
|PE Ratio (TTM)||17.24|
|Earnings Date||Nov. 1, 2019|
|Forward Dividend & Yield||2.44 (5.60%)|
|1y Target Est||42.63|
NEW YORK/LONDON (Reuters) - A gap is emerging in the U.S. liquefied natural gas (LNG) industry as big players such as Exxon Mobil Corp and Cheniere Energy Inc race ahead to build export terminals with fewer long-term contracts, while smaller developers struggle to find financing for their first plants. LNG trade has traditionally been underpinned by long-term purchasing deals which finance multi-billion dollar terminals that liquefy natural gas by chilling it to -260 degrees Fahrenheit (-160 Celsius), load it onto ships, and regasify it when delivered. The growing prowess of oil majors such as Exxon and recent entrants such as Cheniere and trading houses means there are aggregators that can supply buyers more flexibly, making it harder for smaller players.
(Bloomberg) -- Energy trader Gunvor Group Ltd. is on track to exceed last year’s delivery volumes for liquefied natural gas and is already leading rivals in short-term ship charters for the super-chilled fuel.Gunvor has conducted at least 35 charters to carry LNG so far this year, according to research by Fearnleys, which looked at fixtures of less than three years. That’s more than all competitors including major LNG players Qatargas, Cheniere Energy Inc. and Royal Dutch Shell Plc, as well as trading houses Vitol Group and Trafigura Group Ltd.“We have actually, so far, exceeded the number that Fearnleys has in the report,” said Seth Pietras, a Gunvor spokesman in Geneva, without being more specific.While most LNG is still traded under long-term contracts, the share of so-called spot deals, or those less than 90 days, and short-term transactions is rising with the expansion of flexible supply from the U.S. and as buyers seek shorter, less rigid deals.Gunvor is also set to exceed last year’s record deliveries. In 2018, it boosted its LNG volume by 60% to about 11 million metric tons, topping larger rivals Vitol and Trafigura.“We’re on track to significantly increase that volume this year,” Pietras said.The biggest energy trading houses have been rapidly expanding their LNG operations in the past five years, chartering vessels, investing in regasification infrastructure and signing long-term supply contracts with end users that can last for more than a decade.GasLog Ltd., which signed two vessel charters with Gunvor, said the trader’s growth has come despite market headwinds. It can also be attributed to Gunvor’s “ability to structure cargo opportunities where others cannot,” a spokesman for the shipowner said.Traders around the world have this year been hit by declining LNG prices and a narrowing price differential between Pacific and Atlantic regions, a key way for them to make money.Gunvor concluded 25 spot to multi-voyage fixtures in 2018. It currently has 12 vessels that keep natural gas cooled to about minus 160 degrees Celsius (minus 256 Fahrenheit) under its control, Pietras said.The Fearnleys report shows that the vast majority of the Gunvor LNG charters this year have been spot fixtures.Pietras said that while more than 60% of Gunvor’s LNG volumes delivered in 2018 were under mid- to long-term contracts, that percentage will also increase as the trading house expands the number of LNG vessels it has under long-term charter.Gunvor earlier this year named Singapore-based Kalpesh Patel and Ksenia Alleyne in Geneva as global co-heads of LNG.(A previous version of this story corrected the year in the 10th paragraph.) (Updates with comment from GasLog in eighth paragraph.)To contact the reporters on this story: Andy Hoffman in Geneva at email@example.com;Anna Shiryaevskaya in London at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Andrew Reierson, Rob VerdonckFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- India’s Petronet LNG Ltd. signed a $7.5 billion agreement to buy into Tellurian Inc.s proposed liquefied natural gas terminal in Louisiana in what could potentially be one of the largest foreign investments in the U.S. to ship shale gas abroad.Petronet will spend $2.5 billion for an 18% equity stake in the $28 billion Driftwood LNG terminal -- the largest outside holding so far in the project -- and negotiate the purchase of 5 million tons of gas per year. The remaining $5 billion of the total will come from a debt commitment, according to Tellurian Chief Executive Officer Meg Gentle.The memorandum of understanding was announced Saturday. The companies plan to complete the accord by March 31, by which time Tellurian hopes to have signed up partners to enable it to proceed with the project.“We will sign the document sometime in the first quarter and we will have financing ready to close simultaneously, and then we will begin construction,” Gentle said in a telephone interview. “India is one of the fastest growth markets for LNG and should soon become the second-largest LNG importer.”The deal, signed in Houston in the presence of Indian Prime Minister Narendra Modi, underscores a record year for the LNG industry, with tens of billions of dollars worth of export projects given the green light. The surge of new supply from America’s trove of shale gas has rendered the once-premium fuel accessible for emerging markets such as India, currently the sixth-largest buyer of U.S. LNG.“People should not be surprised this came,” said Tellurian co-founder Charif Souki, who also started America’s largest LNG exporter Cheniere Energy Inc. “The United States and India have a significant issue diametrically opposed. We have too much gas that we don’t know what to do with and India needs greater gas, and 1 million tons a time is not going to solve the problem.”The Petronet deal, the largest by an Indian company in U.S. LNG, comes days after the gas industry’s all-important Gastech conference and coincided with Modi’s visit to Texas. The prime minister appeared at Houston’s NRG Stadium with President Trump on Sunday to address a crowd of more than 50,000 Indian Americans.“This deal will further help diversify India’s energy supplies,” said Lydia Powell, who runs the Centre for Resources Management at the New Delhi-based Observer Research Foundation think tank. “The U.S. wants to displace Middle East supplies and India is a large market.”Petronet’s investment is vying to be the largest by a foreign entity with one that Sempra Energy expects to finalize in Texas with Saudi Aramco.Tellurian expects to finalize the last 4 million tons needed for Driftwood’s first phase with one or two partners in the coming months, Gentle said. Petronet’s share represents about $2 billion in annual fuel sales for the life of Driftwood, she said. Tellurian dropped 0.8% to $8.61 at 10:08 a.m. in New“It supports the drilling industry and the pipeline industry, and there is going to be an enormous amount of resources,” Souki said.(Updates share price in penultimate paragraph.)\--With assistance from Kevin Varley, Rahul Satija and Debjit Chakraborty.To contact the reporter on this story: Naureen S. Malik in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, James LuddenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE American: CQP) announced today that it has upsized and priced its previously announced offering of Senior Notes due 2029 (the "CQP 2029 Notes"). The CQP 2029 Notes will bear interest at a rate of 4.500% per annum and will mature on October 1, 2029. The CQP 2029 Notes are priced at par, and the closing of the offering is expected to occur on September 12, 2019.
Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE American: CQP) announced today that it intends to offer, subject to market and other conditions, $1.0 billion principal amount of Senior Notes due 2029 (the "CQP 2029 Notes"). Cheniere Partners intends to use the proceeds from the offering to prepay all of the outstanding term loans under its senior secured credit facilities due 2024 (the “CQP Credit Facilities”) and for general corporate purposes, including funding future capital expenditures in connection with the construction of Train 6 at the Sabine Pass liquefaction project. After applying the proceeds from this offering, only a $750 million revolving credit facility will remain as part of the CQP Credit Facilities, which is undrawn.
The lack of aggressive counter-trend buying is contributing to the slow trade early in the session. Given the current weather forecast, rising production and low cash prices, gains could be limited.
Cheniere Energy's (LNG) earnings are scheduled to be released on Thursday. According to the consensus estimates, the company will report an EPS of $0.34.
Leading LNG (liquified natural gas) exporter Cheniere Energy (LNG) could be one of the beneficiaries of the improving trade talks between the US and China.
As the trade war drags on, Chinese investors are reconsidering investment in new U.S. LNG projects and are reportedly already reassessing long-term supply contracts
(Bloomberg Opinion) -- Donald Trump doesn’t have to impose sanctions on Russia’s controversial Nord Stream 2 pipeline to Germany if he wants Europe to buy more U.S. liquefied natural gas. The market is doing his work for him.Increasing competition is already reducing the European Union’s dependence on Russian exports, and U.S. LNG is an increasingly important factor in determining prices.Asked during an appearance with Polish President Andrzej Duda whether he would use sanctions to block Nord Stream 2, the U.S. president said he was “looking at it” and “thinking about it” because “we’re protecting Germany from Russia. And Russia is getting billions and billions of dollars of money from Germany.”This made headlines because it appeared to repeat earlier threats from the U.S. Senate and Energy Secretary Rick Perry. But later, when a reporter pushed him by saying he had the power to block the pipeline with sanctions, Trump replied:Germany has the power to block it. You know how they block it? By not buying it. I mean, Germany made a decision to buy a tremendous percentage of their energy from Russia. Germany – whether they should be doing that or not, they’re the ones that have the power to block it. They shouldn’t buy it. Or, if they want to, they can. But that’s really a decision of Germany.My reading of these remarks is that Trump is less interested in imposing sanctions than he is eager to get Germany to buy more of the U.S.’s “tremendous” LNG. “I think that’s really the way, if they want to spend a tremendous amount of money,” Trump said.Regardless of what happens with Nord Stream 2, Germany and other European countries are likely to buy more U.S. LNG because they don’t want to spend a tremendous amount of money — in particular, on Russian gas. Nord Stream 2 came up at the Trump press conference with Duda because Poland’s state-owned oil and gas company, PGNiG, is an enthusiastic buyer of U.S. LNG. Last year, the utility signed three long-term contracts with U.S. producers, only one of which — Cheniere Energy Inc. — is already supplying the fuel; the others still haven’t built their export terminals.PGNiG is signing these deals because it is locked into a long-term contract with Russia’s Gazprom and unhappy with the price it’s paying. The dispute is in arbitration, with the Polish utility close to winning a reduction. Even so, the contract runs out in 2022 and PGNiG is threatening not to renew it and seek alternatives from Norway. For those threats to be credible, and for Gazprom to start offering favorable terms, the buyer needs to show that it can already get supplies from elsewhere. It’s making some progress.PGNiG has long claimed it can source LNG at lower prices than those offered by Gazprom. This year, that claim doesn't look so outlandish. Gazprom’s average export price in Europe reached $254 per 1,000 cubic meters in the first quarter of 2019. Spot LNG prices have been lower, hovering about $5 per million British thermal units, or about $177 per 1,000 cubic meters.One may laugh at the U.S. branding of “freedom gas,” but its influence on European prices has been liberating. It is a buyer’s market, at least for now.Only three factors limit Europe’s ability to drive down natural gas prices: Gazprom’s long-term contracts; LNG terminal capacity; and demand in Asia, where prices are higher. The first two of these aren’t immutable: Contracts will run out and be renegotiated, and new terminals are being built (Germany alone has plans for two). That LNG supplies can easily be diverted elsewhere as prices change makes it necessary for European countries to have access to pipeline gas sources — but Gazprom isn’t the only one. It faces competition from Norway and various Mediterranean projects.Germany stands to benefit from this new setup. It needs a lot of gas as it tries to phase out both nuclear and coal power. Demand forecasts vary wildly, but it’s safe to assume the country will buy as much as it can get. Nord Stream2 alone won’t be enough to cover those needs, so Germany will have to turn to the U.S. That, together with supplies from other sources, should help it to negotiate down Gazprom’s prices.It’s a win-win situation for the U.S. LNG producers, Germany and even Gazprom as it seeks to keep a foothold in Europe. But two strong arguments still exist for sanctioning Nord Stream 2. One is the need to preserve the Ukrainian transit route for Russian gas. If it dries up, cash-strapped Ukraine would lose a major revenue source. (For now, though, Russia will pump as much gas as it can to Europe to avoid losing its main export market. Given Gazprom’s importance to the personal wealth of Putin’s close circle, that’s not an option.) The other reason is that Nord Stream 2 undermines Poland’s bargaining power over Gazprom: The supplier would be able to say it has found another buyer in the neighborhood.Trump and U.S. Congress should weigh these dangers against that of further alienating Germany. It might try to defy the sanctions if Gazprom goes ahead with the Nord Stream 2 project without Western partners. Any move by the U.S. against Nord Stream 2 would also confirm to its European allies that Washington’s sanctions policy is merely a tool to advance trade interests.These considerations make for a difficult decision. Trump’s remarks on Wednesday sounded to me as though he were leaning toward letting the market do its job this time. That doesn’t mean he can’t change his mind tomorrow — especially if his trade war with China ends and his attention switches to Europe.To contact the author of this story: Leonid Bershidsky at firstname.lastname@example.orgTo contact the editor responsible for this story: Edward Evans at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Leonid Bershidsky is Bloomberg Opinion's Europe columnist. He was the founding editor of the Russian business daily Vedomosti and founded the opinion website Slon.ru.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
U.S. liquefied natural gas (LNG) company Cheniere Energy Inc said on Monday it will build the sixth liquefaction train at its Sabine Pass LNG export terminal in Louisiana. Cheniere also said it expects to make a positive final investment decision as early as 2020 to add additional capacity in a third stage at its Corpus Christi LNG export terminal in Texas. Natural gas use is growing rapidly around the world as countries, like China, seek to wean their industrial and power sectors off dirtier coal.