| Cheniere Energy to Divest 24 Cargoes to French Firm EDF | |
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U.S. liquefied natural gas (“LNG”) exporter Cheniere Energy, Inc LNG announced that it has inked a deal to divest about 24 cargoes to French energy giant Électricité de France, S.A. (EDF) from 2017 through 2018.
Under the deal, the sales price of the shipments will be linked to the Title Transfer Facility (“TTF”) in the Netherlands, which is the biggest and the most liquid gas trading point in continental Europe.
Interestingly, per an industry source, Cheniere has reserved cancellation options as part of its deal with EDF. This implies that the company could move out of some supply commitments if it found other profitable outlets in Asia or the Middle East.
Though the actual number of cargoes firmly committed to EDF could not be ascertained, sources believe that only a few were likely to arrive at EDF's recently constructed import terminal at Dunkirk, France. The Dunkirk terminal is expected to become operational in 2015.
Cheniere has already shut down a large part of its spare LNG export capacity. The firm, is now looking for other options to place cargoes from its first LNG export plant, which is scheduled to come online in December.
The ideal market for LNG volumes has usually been Asia and the Middle East, where premium is paid by the buyers as demand rises.
However, factors like economic slowdown in China, deteriorating demand for gas in leading LNG importing countries like Japan and South Korea as well as new supply flooding in from Australia and the United States, have reduced prices and increased competition for market share.
Cheniere and EDF already have a strong relation and the latest deal is the outcome of the same. Last month, the company inked a deal to sell 26 cargoes to EDF through 2018.
Per the energy firm, volumes will be sourced from Cheniere Marketing's LNG supply portfolio.
Cheniere carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the same space are Alon USA Partners, LP ALDW, Braskem S.A. BAK and ReneSola Ltd. SOL. All these stocks sport a Zacks Rank #1 (Strong Buy).
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Cheniere Energy Inc.
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CODE : LNG |
ISIN : US16411R2085 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Cheniere Energy is a exploration company based in United states of america. Cheniere Energy is listed in United States of America. Its market capitalisation is US$ 42.9 billions as of today (€ 38.6 billions). Its stock quote reached its lowest recent point on December 31, 2001 at US$ 0.75, and its highest recent level on September 06, 2024 at US$ 180.64. Cheniere Energy has 237 656 695 shares outstanding. |