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Cheniere (LNG) Opts for 5th Carrier Newbuild From Flex LNG

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Cheniere Marketing International, a subsidiary of the Houston, TX-based natural gas exporter, Cheniere Energy (LNG - Free Report) , disclosed its option to employ a fifth liquefied natural gas (LNG - Free Report) carrier from Flex LNG under a time charter agreement, which was made public on Apr 14, 2021.

Flex Volunteer will be the fourth ship under the deal as agreed by Cheniere and Flex LNG. This ship will be handed over to LNG in mid-April 2022 instead of the third quarter of 2022 as originally decided. The 3.5-year time charter has consequently been prolonged by about 2.5 months to facilitate the early delivery of the ship to Cheniere.

Flex Aurora, which was built in 2020, will be the fifth ship to be delivered to Cheniere. It will have a 3.5-year time charter and the delivery will commence during the third quarter of this year.

Cheniere received Flex Vigilant, Flex Endeavour and Flex Ranger last year. These ships were under time charters with a minimum period of somewhere between three and 3.8 years.

Cheniere Energy Inc. is primarily engaged in businesses related to LNG through its two business segments: LNG terminal and LNG and natural gas marketing. Through its controlling interest in Cheniere Energy Partners L.P., the company owns and operates the Sabine Pass LNG terminal in Louisiana – North America’s first large-scale liquefied gas export facility. Furthermore, Cheniere owns and operates the 94-mile Creole Trail Pipeline — an interconnect between the Sabine Pass receiving terminal and downstream markets — through its subsidiary.

Cheniere Energy currently carries a Zacks Rank #3 (Hold). Investors interested in the energy space might look at the following companies. Ranger Oil (ROCC - Free Report) , PDC Energy (PDCE - Free Report) and TotalEnergies (TTE - Free Report) each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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