Cheniere Energy to Provide Poland's First U.S. LNG Supply
Houston-based energy company Cheniere Energy, Inc. LNG recently announced that it has closed a deal to supply liquefied natural gas (‘LNG’) to Poland-based energy company, Polish Oil & Gas (“PGNiG”). The shipment of LNG will start from Cheniere Energy’s Sabine Pass plant to the state-owned PGNiG from mid-June. Notably, this is the first contract of its kind for Central and Eastern Europe.
Poland's yearly consumption of gas amounts to about 15–16 billion cubic meters (bcm). To this end, the country's first LNG terminal was built in ??winouj??cie, which began commercial operations in 2016 with the capacity of 5 bcm per annum.
The deal with Cheniere will help Poland to reduce its dependence on Russian gas supplies. Also, the deal will open up opportunities for the U.S. energy industry – which is presently witnessing a boom in production – in Central and Eastern Europe.
Cheniere Energy, the first company to receive Federal Energy Regulatory Commission (FERC) approval to export LNG from its 2.6 billion cubic feet per day Sabine Pass terminal in Cameron Parish, Louisiana, made the deal with PGNiG’s trading branch in London.
About the Company
Cheniere Energy is primarily engaged in liquefied natural gas-related businesses. The company owns and operates the Sabine Pass liquefied natural gas terminal in Louisiana through its 57.9% ownership interest in and management agreements with Cheniere Energy Partners, L.P. CQP, a publicly traded partnership created by the company in 2007. The Sabine Pass LNG terminal is located on the Sabine Pass deep water shipping channel, less than four miles from the Gulf Coast.
Price Performance
In the last six months Cheniere Energy’s shares have outperformed the Zacks categorized Oil and Gas - United States - Exploration and Production industry. The company’s shares gained 20.58% while the industry witnessed a decrease of 6.25%.
Zacks Rank and Stocks to Consider
Cheniere Energy presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in oil and energy sector are Penn Virginia Corporation PVAC and Antero Resources Corporation AR. Both these two stocks flaunt the Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Penn Virginia’s year-over-year sales growth for the current year is expected to increase 24.75%. The company recorded a positive earnings surprise of 36.67% in the last quarter of 2016.
Antero Resources is expected to record 7.82% year-over-year growth in 2017 sales. The company had an average positive earnings surprise of 239.10% in the last four quarters.
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