Cheniere Energy Q3 2024 Earning Call Summary

Management Comments

• LNG Production Levels

  • Corpus Christi (CCL) Stage 3:

    • 68% complete as of Q3 2024; Train 1's first gas is imminent, with initial LNG production by year-end 2024 and full substantial completion of all three trains expected in 2025.

  • Sabine Pass (SPL):

    • Expected to produce 47-48 MTPA (approximately 6.1 - 6.2 Bcf/d) in 2025, including both Sabine Pass and Corpus Christi projects, after commissioning volumes.

• Maintenance & Turnarounds

  • Sabine Pass major maintenance on Trains 3 and 4 in 2025, with expected impacts offset by debottlenecking.

  • Planned maintenance mostly completed in Q2 supported higher LNG volumes in subsequent months.

• Weather Events

  • Operations and construction activities remained unaffected by hurricanes at Sabine Pass and Corpus Christi this year, supporting project timelines.

• Upcoming Projects

  • Sabine Pass Expansion Project granted FTA export authorization; FID expected in 2026.

  • CCL Stage 3 development includes Trains 1-3, with FID on additional Corpus Christi trains anticipated in 2025.

• Global LNG Demand & Contracts

  • Asia: LNG imports grew by 10% YoY, driven by increased demand in Japan, South Korea, and China.

  • Europe: Europe remained stable, but supply risks due to geopolitical factors could increase LNG pull from the U.S.

  • New Contracts: Long-term contracts cover 95% of production volumes, with a focus on energy security and stable pricing amidst global volatility.

• New Pipelines and Infrastructure

  • Expansion at Sabine Pass and Corpus Christi; SPL pipeline developments to support increased LNG demand.

• Market Activity & State

  • Strong Asian demand sustained premium pricing (JKM > TTF) for most of the year, driving LNG flows from Europe to Asia.

  • Geopolitical tensions remain high, especially in Europe, affecting market stability and driving volatility in LNG pricing.

Q&A Session Highlights

• Maintenance and Production Guidance

  • Sabine Pass major maintenance on Trains 3 and 4 in 2025, expected to be longer than prior maintenance but offset by efficiency improvements.

  • Corpus Christi Train 1 LNG production remains on schedule for year-end, with substantial completion of Trains 2 and 3 in H2 2025.

• LNG Demand and Market Activity

  • Significant competition for LNG cargoes; strong MENA demand particularly from Egypt, which saw a 57% increase in imports YoY.

  • "Current LNG market remains tight, sensitive to any disruptions from geopolitical tensions or unplanned outages," indicating sustained price risks.

• New Capacity and Contracts

  • Stage 3 commissioning volumes are projected to create an additional 3-4 million tonnes (0.4-0.5 Bcf/d) of LNG available for spot contracts in 2025.

  • LNG demand in Asia, led by China and Japan, contributed to an increase in term contracts extending beyond 20 years.