We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cheniere (LNG) Inks LNG Sale and Purchase Agreement With CPC
Read MoreHide Full Article
A subsidiary of Cheniere Energy, Inc. (LNG - Free Report) — Cheniere Marketing International LLP — has inked a sale and purchase agreement (SPA) relating to liquefied natural gas (LNG - Free Report) with CPC Corporation, Taiwan (“CPC”).
Agreement Details
Per the agreement, Cheniere will sell about 2 million tons of LNG per year to the state-owned oil and gas company on a delivered basis. The transaction will begin from 20121 and extend for 25 years. It is valued at about $25 billion, based on current prices. However, no financial details were disclosed by the parties. The purchase price for LNG will be attached to the monthly price of Henry Hub along with a fee.
About Cheniere
Cheniere's Sabine Pass terminal in Louisiana has transformed the United States into a major LNG exporter in the last two years. The company is currently involved in the marketing of its sixth train at Sabine Pass and is likely to make an investment decision in 2019. Cheniere is also constructing the Corpus Christi terminal in Texas.
The agreement has provided security to a large portion of Cheniere's portfolio volume on a long-term basis. It will also enable the company to preserve the ability to utilize these volumes to support a future train or expansion project.
Benefits to CPC Corporation
Qatar, Australia and the United States are expected to become the leading providers of LNG in the near future. CPC has already been importing considerable volumes from Qatar and Australia. Per sources, the deal is believed to be a vital part of Taiwan’s efforts to reduce trade surplus with the United States.
Per the International Gas Union, Taiwan is the world's fifth biggest importer of LNG. The country imported about 16.8 million tons in 2017 or about 6% of global import market share.
Per sources, the contract also enhances Taiwan's trade relations with the United States, considering the Trump administration's focus on dealings in Asia.
Price Performance
Cheniere Energy has outperformed the industry in the past year. The company’s shares have rallied 47.5% compared with the industry's 23.8% rise.
Zacks Rank & Other Stocks to Consider
Cheniere Energy currently carries a Zacks Rank #2 (Buy).
Petroleo Brasileiro S.A. (PBR - Free Report) , or Petrobras SA, is the largest integrated energy firm in Brazil and one of the largest in Latin America. It pulled off an average positive earnings surprise of 10.4% in the last four quarters.
Helix Energy offers specialty services to the offshore energy industry The company delivered an average positive earnings surprise of 66.7% in the trailing four quarters.
TC Pipelines purchases, owns and actively participates in the management of U.S.-based natural gas pipelines and related assets. The company delivered an average positive earnings surprise of 3.7% in the last four quarters.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Cheniere (LNG) Inks LNG Sale and Purchase Agreement With CPC
A subsidiary of Cheniere Energy, Inc. (LNG - Free Report) — Cheniere Marketing International LLP — has inked a sale and purchase agreement (SPA) relating to liquefied natural gas (LNG - Free Report) with CPC Corporation, Taiwan (“CPC”).
.jpg)
Agreement Details
Per the agreement, Cheniere will sell about 2 million tons of LNG per year to the state-owned oil and gas company on a delivered basis. The transaction will begin from 20121 and extend for 25 years. It is valued at about $25 billion, based on current prices. However, no financial details were disclosed by the parties. The purchase price for LNG will be attached to the monthly price of Henry Hub along with a fee.
About Cheniere
Cheniere's Sabine Pass terminal in Louisiana has transformed the United States into a major LNG exporter in the last two years. The company is currently involved in the marketing of its sixth train at Sabine Pass and is likely to make an investment decision in 2019. Cheniere is also constructing the Corpus Christi terminal in Texas.
The agreement has provided security to a large portion of Cheniere's portfolio volume on a long-term basis. It will also enable the company to preserve the ability to utilize these volumes to support a future train or expansion project.
Benefits to CPC Corporation
Qatar, Australia and the United States are expected to become the leading providers of LNG in the near future. CPC has already been importing considerable volumes from Qatar and Australia. Per sources, the deal is believed to be a vital part of Taiwan’s efforts to reduce trade surplus with the United States.
Per the International Gas Union, Taiwan is the world's fifth biggest importer of LNG. The country imported about 16.8 million tons in 2017 or about 6% of global import market share.
Per sources, the contract also enhances Taiwan's trade relations with the United States, considering the Trump administration's focus on dealings in Asia.
Price Performance
Cheniere Energy has outperformed the industry in the past year. The company’s shares have rallied 47.5% compared with the industry's 23.8% rise.
Zacks Rank & Other Stocks to Consider
Cheniere Energy currently carries a Zacks Rank #2 (Buy).
A few other top-ranked players in the same sector are Petroleo Brasileiro S.A. (PBR - Free Report) , or Petrobras SA, Helix Energy Solutions Group, Inc (HLX - Free Report) and TC Pipelines, LP . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Petroleo Brasileiro S.A. (PBR - Free Report) , or Petrobras SA, is the largest integrated energy firm in Brazil and one of the largest in Latin America. It pulled off an average positive earnings surprise of 10.4% in the last four quarters.
Helix Energy offers specialty services to the offshore energy industry The company delivered an average positive earnings surprise of 66.7% in the trailing four quarters.
TC Pipelines purchases, owns and actively participates in the management of U.S.-based natural gas pipelines and related assets. The company delivered an average positive earnings surprise of 3.7% in the last four quarters.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>