- Cheniere wants to take advantage of Trump’s support for LNG
- Expects to produce up to 90 MTPA of superchilled gas
- Company’s profits in 2024 fell due to lower LNG prices
Feb 20 (Reuters) – U.S. liquefied natural gas exporter Cheniere Energy (LNG.N) plans to aggressively pursue new regulatory permits to expand capacity now that U.S. President Donald Trump is in office, the company’s CEO, Jack Fusco, said on Thursday.
The approach comes as Cheniere, America’s top shipper of the super-chilled fuel, forecast 2025 profits below analyst estimates following a year of moderated prices in the tight global market.
“We intend to strategically pursue permits to ensure the long-term growth optionality of Sabine Pass and Corpus Christi,” Fusco said, referring to the company’s big export terminals.
Fusco described the Trump administration’s pro-energy policies as refreshing and said Cheniere needs to take the opportunity to secure regulatory certainty.
Trump, on his first day in office in January, issued an order to resume processing export permit applications for new LNG projects.
Fusco said Cheniere plans to double its current production of LNG to 90 million metric tonnes per annum (MTPA) by building more export facilities at Sabine Pass and Corpus Christi, both in Texas.
LNG is natural gas supercooled to a liquid before being shipped. While supporters say it can help some economies quit using coal, many environmentalists say LNG locks consumers into fossil fuel dependence for decades and that LNG once regassified can leak methane, a potent greenhouse gas, from pipelines.
Trump has declared an energy emergency with a promise to reduce regulatory challenges and encourage high U.S. energy production and exports.
Construction on Cheniere Energy’s Corpus Christi Stage 3 LNG export facility is ahead of schedule, and all the equipment has been delivered, reducing the risk of import tariffs that Trump has imposed on some countries.
Cheniere said it is expecting up to 2 million metric tonnes of LNG to be produced from Stage 3 by the end of the year.
In its 2025 outlook Cheniere said it expected core profit to be below Wall Street expectations.
Cheniere expects adjusted core profit between $6.5 billion and $7 billion for 2025, the midpoint end of which is below analysts’ average expectation of $6.83 billion, according to LSEG data.
TD Cowen analysts said though the forecast missed estimates, they expect the guidance to increase through the year based on LNG’s track record.
The LNG market remained relatively tight in 2024 as a result of low supply capacity growth, strong demand outside Europe and continued geopolitical tensions, Cheniere reported.
But despite the favorable market conditions, annual spot prices were overall lower in 2024 than in 2023.
Even if Trump is able to negotiate an end to the Ukraine war, Europe will still require significant U.S. LNG, predicted Cheniere’s executive vice president, Anatol Feygin.
Cheniere reported a 67% slump in net income, a 30% decline in earnings before interest, taxes, depreciation and amortization while revenue fell 23% in 2024 compared with 2023.
The company also blamed the results on some unfavorable accounting changes.
The company reported LNG revenue of $14.89 billion for the year ended December 31, compared with $19.56 billion in 2023.
Cheniere said it is banking on the expected completion of the Corpus Christi expansion project this year to increase supplies of LNG.
Cheniere said it produced first LNG from the expansion project in December and its first cargo in February.
Cheniere has signed several long-term LNG sales agreements with companies including a recent supply deal with Indian Oil Corp (IOC.NS).
Reporting by Mrinalika Roy in Bengaluru and Curtis Williams in Houston; Editing by Sriraj Kalluvila, Maju Samuel, Emelia Sithole-Matarise and Leslie Adler
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