(Reuters) – U.S. liquefied natural gas (LNG) company Cheniere Energy Inc said on Thursday that customers were starting to sign long-term contracts to buy LNG again.
“We have begun to see the return of long-term LNG contracts in support of the construction of new liquefaction capacity,” Cheniere Chief Executive Jack Fusco told analysts on an earnings call.
So far in 2021, he said the company entered into sales agreements with multiple counterparties aggregating approximately 12 million tonnes of LNG to be delivered between 2021-2032.
Cheniere said the sixth liquefaction train at its Sabine Pass export plant in Louisiana was on track to enter commercial service in the first half of 2022. The unit will likely start producing LNG in test mode later this year.
Cheniere also said it continues to develop the Stage 3 expansion at its Corpus Christi plant in Texas.
Cheniere reported second quarter consolidated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.023 billion and distributable cash flow of about $340 million on revenue of over $3 billion.
It posted a quarterly net loss of $329 million due primarily to accounting treatment of derivatives.
Cheniere increased its 2021 consolidated adjusted EBITDA guidance to $4.6-$4.9 billion and 2021 distributable cash flow guidance to $1.8-$2.1 billion due primarily to improved LNG market margins and an increase in forecasted LNG production.
“Market dynamics on both the supply side and demand side continue to move in our favor and support our conviction in the long-term growth prospects for natural gas worldwide,” Fusco said, noting LNG exports hit a quarterly record 139 cargoes.
Each of Cheniere’s nine liquefaction trains, including Sabine 6, can produce about 5 million tonnes per annum (MTPA) of LNG, or 0.66 billion cubic feet per day of natural gas.
Corpus Stage 3 is designed to produce over 10 MTPA.
(Reporting by Scott DiSavino; editing by Emelia Sithole-Matarise and Marguerita Choy)