Sunday, July 12, 2015

Cheniere Energy: Massive Long-Term Plans But With High Execution Risk


Summary

  • Cheniere Energy continues lining up new projects before getting the primary Sabine Pass LNG export project into production.
  • The company is continuing to build up debt levels.
  • The competitive landscape in the LNG export market continues heating up as the Gorgon LNG project faces issues with selling test gas.
  • Cheniere Energy's execution risks continue adding up until the company gets major projects into production.
    As alluded to in Cheniere Energy: Paying Up For Unfinished Projects, the company is in the midst of a major building boom. The scale of the proposed projects are almost unprecedented considering the company has limited production facilities and proven results. What Cheniere Energy (NYSEMKT:LNG) does have is ideal assets for building LNG export facilities and a first-mover advantage in getting FERC approval for exporting a precious resource that originally faced concerns that the government would ever allow such a move.

Read the full article on Seeking Alpha.


 Disclosure: No positions mentioned. Please read the disclaimer page for more details.

No comments: