Cheniere Report Higher Asian LNG Demand, Guides Higher For Global Demand

Houston based Cheniere Energy $LNG reported a loss of $289 million or -$1.24 per share for Q317 Tuesday, adjusted to extinguish debt and asset impairment  -$1.09 per share. LNG posted revenue of $1.4 billion for Q3. What we noted was the higher LNG Demand From Asia and the natural gas company guding higher for global demand.

Houston based Cheniere Energy $LNG reported a loss of $289 million or -$1.24 per share for Q317 Tuesday, adjusted to extinguish debt and asset impairment  -$1.09 per share. LNG posted revenue of $1.4 billion for Q3. What we noted was the higher LNG Demand From Asia and the natural gas company guding higher for global demand.

LNG Asia Demand

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Cheniere reported that during the first nine months of 2017, LNG demand in Asia has materialized higher than originally expected. In the fourth quarter of 2016, $LNG guided that they would demand ~140 million tonnes but actual demand YTD has reached ~160 million tonnes.

Criterion Research in a note said Asian LNG spot price has steadily risen since August, outpacing 2016 averages over the same period with a recent value of $9/MMbtu. Comparatively, it was selling for >$6/MMbtu at the same time in 2016.

LNG From Sabine Pass

Cheniere is in its earnings outlook sees a 30% Growth in Global Gas Demand by 2030 with LNG Demand to Rise to 475 Mtpa. Criterion noted Cheniere reported that their investment theses is built off of several key demand forecasts. Cheniere is guiding global natural gas demand to increase by 30% through 2030 with LNG demand rising by more than 200 Mtpa to 475 Mtpa in the same time frame.

LNG demand grew 7.5% in 2017 to 263.6 Mtpa with 39 countries being capable of importing LNG volumes.

Source: Cheniere, Criterion Research

From The Traders Community Research Desk

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