Cheniere Energy - LNG Is A Buy - NT $10.00 Then Upward to $15

Cheniere Energy's Liquefaction Project Update

In June 2010, Sabine Liquefaction initiated a project to add liquefaction services at the Sabine Pass LNG terminal that would transform the terminal into a bi-directional facility capable of liquefying natural gas and exporting LNG in addition to importing and regasifying foreign-sourced LNG. As currently contemplated, the project is being designed and permitted for up to four LNG trains, each with a nominal production capacity of approximately 4.0 million tonnes per annum ("mtpa"). Sabine Liquefaction intends to enter into long-term, fixed-fee contracts for at least 3.5 mtpa per train, before reaching a final investment decision regarding the development of each train.

Recent developments of the liquefaction project include:

•In August 2010, Sabine Liquefaction received approval from the Federal Energy Regulatory Commission ("FERC") to begin the pre-filing process required to seek authorization to commence construction of the liquefaction project. In January 2011, the pre-filing period was completed and Sabine Liquefaction submitted an application requesting authorization to site, construct and operate liquefaction facilities at the Sabine Pass LNG terminal. The FERC process is expected to be complete by early 2012.
•In September 2010, the Department of Energy ("DOE") granted Sabine Liquefaction an order authorizing Sabine Liquefaction to export up to 16 mtpa of domestically produced LNG from the Sabine Pass LNG terminal to Free Trade Agreement ("FTA") countries for a 30-year period beginning on the earlier of the date of first export or September 7, 2020. Sabine Liquefaction filed a second application requesting expansion of the order to export to include countries with which the U.S. does not have an FTA. The public comment period for this authorization ended December 13, 2010, and the order is pending.
•Sabine Liquefaction has engaged Bechtel to complete front-end engineering and design work and to negotiate a lump-sum turnkey contract for the project. Construction costs are estimated to be consistent with other recent liquefaction expansion projects constructed by Bechtel, or approximately $400 per ton, before financing costs. Additional work needs to be completed with Bechtel in order for Sabine Liquefaction to be able to make an estimate specific to the project.
•Sabine Liquefaction has engaged SG Americas Securities, LLC ("Societe Generale") for general financial strategy and planning in connection with the development and financing of the project.
•To date, Sabine Liquefaction has signed eight non-binding memoranda of understanding ("MOUs") with potential customers for up to approximately 9.8 mtpa of bi-directional processing capacity. Sabine Liquefaction has initiated negotiations to convert these non-binding MOUs into definitive agreements.

Sabine Liquefaction will contemplate making a final investment decision to commence construction upon, among other things, entering into acceptable commercial arrangements, receiving regulatory authorization to construct and operate the liquefaction assets and obtaining adequate financing. Based on company estimates, we expect construction to commence in 2012 and operations to commence in 2015.

Also, the recent Japanese news is very Bullish for Cheniere Energy's plan to export LNG to WTO organizations in need. Comparing to the PNG LNG project of IOC stock at $72 which comes online in 2014, LNG is cheap below $9.00.

An energy shift is taking place from Nuclear to LNG. Get on board and hold.

New Cheniere Energy Chart (LNG)

Chevron To Boost Mega LNG Projects - Cheniere Energy's LNG Project Should Benefit

Chevron expects 2011 upstream capital investments of $22.6 billion, a 20% rise from 2010, as it undertakes major investments in LNG mega-projects in Australia and Angola, executives said Monday.

The majority of the increase, 60%, is directed toward major projects including advancing its Australian LNG projects at Gorgon and Wheatstone, as well as Angola LNG, said George Kirkland, Chevron vice chairman and executive vice president, during the company's annual analyst meeting Monday.

About $6 billion of the total is tapped for LNG projects, he added.

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More Japan LNG Related News

Citigroup Upgrades LNG to $10.00 Target

This info is confirmed. Citigroup has LNG to $10.00 Target up from $5.00.