Cheniere Energy, Inc. has made a positive final investment decision on the Corpus Christi Midscale Trains 8 & 9 project, increasing the company's brownfield LNG platform by over 10% to more than 60 million tonnes per annum (mtpa) of capacity by 2028. The company announced an updated run-rate LNG production outlook, reflecting an increase in combined liquefaction capacity across the Cheniere platform at Sabine Pass and Corpus Christi by over 10% to over 60 mtpa.
The previous run-rate capacity for large-scale trains was approximately 44-46 mtpa, and it has been revised to approximately 45-47 mtpa, an increase of around 1 mtpa. The number of midscale trains has increased from 7 to 9, with a run-rate capacity of approximately 10-11 mtpa being revised to around 15-16 mtpa, marking an increase of approximately 5 mtpa. Consequently, the total run-rate capacity has been adjusted from around 54-57 mtpa to approximately 60-63 mtpa, reflecting a boost of around 6 mtpa.
The company expects further brownfield liquefaction capacity expansions at both the Corpus Christi and Sabine Pass terminals, anticipating a phased approach to grow Cheniere’s LNG platform to up to approximately 75 mtpa of capacity by the early 2030s.
In terms of financial forecasts, Cheniere expects to reach over $25 billion of available cash through 2030, which the company plans to allocate across disciplined accretive growth and shareholder returns in the form of buybacks and dividends, as well as balance sheet management. The company is on track to meet its previously announced ‘20/20 vision’ capital allocation plan of deploying approximately $20 billion of capital by 2026 and reaching approximately $20 per share of run-rate distributable cash flow.
Cheniere's President and Chief Executive Officer, Jack Fusco, expressed his pleasure in announcing the final investment decision, highlighting the company's continuous efforts to grow its world-class infrastructure platform. He recognized the teamwork, commitment, and execution, critical elements in the successful commercialization and development of the project.
Zach Davis, Cheniere’s Executive Vice President and Chief Financial Officer, credited the upwardly revised run-rate production and financial forecasts to the company’s operational excellence program and continuous efforts to economically debottleneck and optimize its business.
Cheniere Energy, Inc. is the leading producer and exporter of liquefied natural gas in the United States, with a focus on providing a clean, secure, and affordable solution to the growing global need for natural gas. Today the company's shares have moved 3.05% to a price of $239.62. For more information, read the company's full 8-K submission here.
