While it continues to push forward with its plan to export liquefied U.S. shale gas to global markets, Cheniere Energy Partners LP continues to lose money.
During the third quarter Cheniere lost $14.5 million, more than double the $7 million loss it reported for the year-ago quarter. During the first nine months of this year Cheniere lost $23.6 million, compared with net income of $110.2 million for the year-ago period. The difference primarily resulted from a decrease in affiliate revenues due to the assignment this year of a terminal use agreement from Cheniere Marketing LLC to Cheniere Energy Investments LLC, Cheniere said.
The liquefaction project has been designed for up to four liquefied natural gas (LNG) trains, each with a nominal production capacity of 4.5 million metric tons per year.
“We continue to make progress on our project to add liquefaction services at the Sabine Pass LNG terminal,” the partnership said. “We intend to enter into long-term contracts for at least 3.5 [million metric tons per year] (approximately 0.5 Bcf/d) per LNG train, before reaching a final investment decision regarding the development of the LNG trains.”
In September Cheniere sold 3,000,000 common units in an underwritten public offering and 1,072,131 common units to Cheniere Common Units Holding LLC for net proceeds of about $60 million, which the partnership intends to use for general business purposes, including development costs to add liquefaction capacity at the Sabine Pass LNG terminal (see Daily GPI, Sept. 16).
Last month Sabine Liquefaction entered into its first liquefied natural gas (LNG) sale and purchase agreement with BG Gulf Coast LLC under which BG has agreed to purchase 3.5 million metric tons per year of LNG for 20 years, with an extension option of up to an additional 10 years (see Daily GPI, Oct. 27).
“We will continue to negotiate definitive agreements with additional potential customers and contemplate making a final investment decision to commence construction of the liquefaction project upon, among other things, entering into acceptable commercial arrangements, receiving regulatory authorization to construct and operate the liquefaction assets and obtaining adequate financing,” the partnership said.
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