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Cheniere (LNG) Signs a Long-Term LNG Sale Deal With Equinor

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The Houston, TX-based liquefied natural gas (“LNG”) company, Cheniere Energy, Inc. (LNG - Free Report) , recently announced that it entered into an LNG sale and purchase agreement with the Norwegian state-owned energy firm, Equinor ASA (EQNR - Free Report) , through its subsidiary –  Cheniere Marketing, LLC.

Per the terms of the deal, Equinor will buy roughly 1.75 million tons per annum (mtpa) of LNG from Cheniere Marketing on a free-on-board basis for about 15 years. The delivery under the agreement is set to commence in the second half of 2026 and will reach the full 1.75-mtpa figure by the second half of 2027.

However, nearly 50% of the volume, about 0.9 mtpa, is subject to Cheniere’s final decision of constructing an additional liquefaction facility at the Corpus Christi LNG Terminal beyond the seven-train Corpus Christi Stage III Project.

Jack Fusco, LNG’s President and Chief Executive Officer, mentioned that EQNR is one of Europe’s top energy companies and that his firm is excited to form a long-term partnership with an organization that shares the common ambition for a sustainable future. He added that this deal further cements Cheniere’s leadership in supplying reliable and cleaner-burning long-term LNG.

Cheniere Energy Inc. is primarily engaged in businesses related to LNG through its two business segments: LNG terminal and LNG and natural gas marketing. The company, through its controlling interest in Cheniere Energy Partners L.P., owns and operates the Sabine Pass LNG terminal in Louisiana – North America’s first large-scale liquefied gas export facility.

Headquartered in Stavanger, Norway, Equinor ASA is one of the premier integrated energy companies in the world, with operations spreading across 30 countries. In Europe, the company is the second-largest supplier of natural gas. Equinor is also a leading seller of crude oil. Over the years, the company has developed its expertise to expand upstream operations outside conventional offshore resources to the prolific shale oil and gas plays.

Cheniere currently sports a Zacks Rank #1 (Strong Buy). Some other similar-ranked stocks from the energy space that warrant a look include Earthstone Energy (ESTE - Free Report) and Valero Energy (VLO - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Earthstone’s 2022 earnings has been revised upward by about 37.1% over the past 60 days from $2.80 to $3.84 per share. Earthstone’s stock has increased 77.4% in a year.

The Zacks Consensus Estimate for ESTE’s 2022 earnings is projected at $3.84 per share, up about 207.2% from the projected year-ago earnings of $1.25.

The Zacks Consensus Estimate for Valero’s 2022 earnings is projected at $16.68 per share, up about 493.6% from the projected year-ago earnings of $2.81.

Valero beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 84.3%.

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