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Cheniere Energy (CQP) to Take Control of Sabine Pass Train 3

Zacks Equity Research

Houston, TX-based Cheniere Energy Partners, L.P. CQP – a subsidiary of liquefied natural gas exporter Cheniere Energy Inc. LNG – is set to take control of the third liquefaction train at Louisiana facility.  

Construction of the Train 3 of the Sabine Pass liquefaction project was completed by the contractor Bechtel Oil, Gas and Chemicals, Inc. on Mar 28. Upon the completion, Bechtel turned over the custody of the train to Cheniere Energy Partners as the train is ready to operate. Train 3 is set for its first commercial delivery in June under a 20-year supply contract with Korea Gas Corporation. With the completion of Train 3, revenues of the partnership are likely to benefit from the increased LNG sales.

Cheniere Energy Partners intends to construct six liquefaction trains at Sabine Pass. Construction of the Trains 1, 2 and 3 are completed. The partnership has requested regulatory approvals in March to commence commissioning activities at the Train 4 and has been permitted for the same.  While Train 5 is under construction, Train 6 is being commercialized.  

Each train has an estimated nominal production capacity of 4.5 million tons per annum of liquefied natural gas. Train 4 and Train 5 are expected to begin exporting in the second half of 2017 and in 2019 respectively.

Cheniere Energy Partners is also developing a liquefaction and export terminal in Corpus Christi, TX. Trains 1 and 2 are under construction, and Train 3 is permitted.

Zacks Ranks & Other Stocks to Consider

Cheniere Energy Partners is an energy partnership focused on liquefied natural gas-related businesses. It owns and operates liquefied natural gas receiving terminals and liquefied natural gas pipelines in Louisiana and Texas. The partnership sports a Zacks Rank #1 (Strong Buy).

The partnership outperformed the Zacks categorized Oil and Gas Production and Pipelines industry over the prior three months. During the period, units of Cheniere Energy Partners rallied by 10% while the broader industry gained just 0.3%. 

Other favorably placed stocks in the broader industry include Antero Resources Corp. AR and Pioneer Natural Resources Company PXD. Both the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources reported positive earnings surprise in each of the preceding four quarters, the average being 239.10%.

Pioneer Natural Resources is expected to deliver year-over-year growth of 1118.6% in its earnings in 2017.

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Cheniere Energy Partners, LP (CQP): Free Stock Analysis Report
Pioneer Natural Resources Company (PXD): Free Stock Analysis Report
Antero Resources Corporation (AR): Free Stock Analysis Report
Cheniere Energy, Inc. (LNG): Free Stock Analysis Report
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