Back to top

Image: Bigstock

Cheniere (LNG) to Introduce Feed Gas to Sabine Pass Train 6

Read MoreHide Full Article

Cheniere Energy Inc. (LNG - Free Report) obtained permission from the Federal Energy Regulatory Commission to introduce feed gas to commission certain portions of Train 6 at the Sabine Pass liquefied natural gas export facility in Louisiana.

The approval was in response to Cheniere’s request to introduce gas and enable the Train 6 fuel gas system. Feed gas is processed natural gas from pipelines, which will be converted into liquefied natural gas.

The company expects Train 6 to complete in the first half of 2022. However, most analysts opine that the facility will start producing liquefied natural gas in test mode later this year. Once Train 6 is completed, the facility will have a production capacity of about 30 million metric tons per year of liquefied natural gas.

Cheniere is a major liquefied natural gas exporter and the largest buyer of natural gas in the United States. Notably, feed gas deliveries to the company's Sabine Pass facility hit their highest level since May, when the terminal was allowed to begin flows to Train 6 as part of commissioning.

Beside Sabine Pass, Cheniere also owns the Train 3 at its Corpus Christi liquefied natural gas export plant in Texas. With scheduled facility or pipeline maintenance affecting two other export terminals, the company’s Sabine Pass and Corpus Christi facilities combined for more than 60% of the total 10.2 billion cubic feet per day of feed gas demand in the United States.

Once fully operational, Cheniere's ninth overall liquefaction unit across its two terminals in Sabine Pass and Corpus Christi will bring its total capacity to 45 million metric tons per year. The company expects to make a final investment decision in 2022 on a 10-million-metric-ton year expansion with the help of mid-scale units at the site of its Texas facility.

Company Profile

Headquartered in Houston, TX, Cheniere primarily engages in businesses related to liquefied natural gas.

Zacks Rank & Other Stocks to Consider

The company currently carries a Zack Rank #2 (Buy).

Some other top-ranked players in the energy space are Earthstone Energy, Inc. (ESTE - Free Report) , Phillips 66 Partners LP (PSXP - Free Report) and Schlumberger Limited (SLB - Free Report) , each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earthstone’s earnings for 2021 are expected to increase 52.6% year over year.

Phillips 66’s earnings for 2021 are expected to rise 51.6% year over year.

Schlumberger’s earnings for 2021 are expected to increase 45.1% year over year.