LNG Gains Boosts Cheniere Energy Earnings and Outlook

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    ThePitBoss
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    Houston based Cheniere Energy  reported higher than expected third…

    [article]1195[/article]

    #18970
    ThePitBoss
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    First tanker carrying U.S. LNG since the tariff was imposed landed in China earlier this week.

    From Bloomberg:

    Sales to the country are up more than 50 percent year over year “and that’s not slowing down,’’ Cheniere Chief Executive Officer Jack Fusco said in an interview at the company’s Houston headquarters. “Our product is extremely hot.’’

    Fusco said he expects China to continue to buy U.S. LNG, noting Cheniere already has a contract to deliver it this winter to state-backed China National Petroleum Corp. A company spokesman declined to comment on the prospect of higher tariffs.

    More than a decade in the making, Cheniere’s Corpus Christi plant tells the tale of the changing fortunes of the natural gas business. It was conceived as a terminal to import fuel, but the domestic shale boom scrapped those plans and the site stood vacant for years

    Fusco said he expects China to continue to buy U.S. LNG, noting Cheniere already has a contract to deliver it this winter to state-backed China National Petroleum Corp. A company spokesman declined to comment on the prospect of higher tariffs.

    More than a decade in the making, Cheniere’s Corpus Christi plant tells the tale of the changing fortunes of the natural gas business. It was conceived as a terminal to import fuel, but the domestic shale boom scrapped those plans and the site stood vacant for years

    Global LNG demand is on track to climb 8.5 percent this year to 308 million tons from last year, and surge to 450 million tons by 2030, according to Bloomberg NEF.

    “The shale revolution in the U.S. changed the whole picture because we were an importing country and we are now an exporting country,” said Zhen Zhu, an economist with engineering and consulting firm C.H. Guernsey in Oklahoma City. “We’re now experiencing that fundamentally changing the whole market.”

    The U.S. is heading into winter with the lowest stockpiles in 15 years. That threatens to send gas prices spiking during a cold snap, potentially dissuading buyers in Europe or Asia

    .https://www.bloomberg.com/news/articles/2018-11-14/cheniere-bets-15-billion-on-world-gas-demand-despite-tariff-war

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