Cheniere Energy: Ready To Breakout

Now, it looks like the company is all set to export the first tranche of LNG from the Sabine Pass terminal, as last Sunday, the Asia Vision LNG tanker docked at Sabine Pass.

The Asia Vision has been waiting out in the Gulf of Mexico along with the Energy Atlantic for many weeks now as Cheniere has encountered delays in the commissioning and startup of Train 1.

Cheniere Energy began loading the first tanker of LNG at its hulking Sabine Pass terminal in Louisiana.

This is the second cut this year as the world’s second-largest liquefied natural gas (LNG) importer after Japan lowered gas prices last month by 9 percent on average.

As global LNG trading becomes busier, spot market activity will rise, with predictions of spot LNG climbing to 40% to 50% of global business by 2020.

“The milestone of delivering the first cargo is a nice PR milestone, but it doesn’t mean very much in the grand scheme of things in terms of the business”, said Pavel Molchanov, an energy market analyst with Raymond James & Associates. The terminal is located in Cameron Parish on more than 1,000 acres of land along the Sabine Pass River.

Separately, Citigroup Inc. upgraded Cheniere Energy from a “neutral” rating to a “buy” rating and reduced their price objective for the company from $72.00 to $47.00 in a research report on Wednesday, January 13th.

Cheniere Energy (LNG) was Upgraded by Goldman to ” Buy”.

Demand is forecast to be higher in South America during the spring, in part due to a drought that has increased Brazil’s dependence on the power-plant fuel.

Although the United States has exported LNG from Alaska to Japan for several years, it has not done so ever from the “lower 48” states of the continental US.

Cheniere didn’t immediately respond to a request for comment on the tanker pulling away. Other gas-export projects are expected to come under pressure to secure financing and long-term contracts amid the global commodity rout and shifts in demand overseas, Daniel Yergin, vice chairman of the energy consulting group IHS Inc., said in an interview February 17. Cheniere didn’t respond to an e-mail and voicemail.

Shares of Petrobras are down 3.6% today along with a almost 5% decline in the USA oil price, and a 4% slide in the worldwide Brent benchmark to $33.29 per barrel.

Cheniere Energy Inc is engaged in LNG-related businesses.