Cheniere Achieves First LNG at the Corpus Christi Stage 3 Project

Rhea-AI Summary

Cheniere Energy (NYSE: LNG) has achieved its first LNG production from Train 1 of the Corpus Christi Stage 3 Liquefaction Project. The project is progressing ahead of schedule, with substantial completion expected by the end of Q1 2025, over six months earlier than guaranteed. As of November 30, 2024, the overall project is 75.9% complete, with engineering at 96.8%, procurement at 97.2%, subcontract work at 87.7%, and construction at 39.2%. CCL Stage 3 will feature seven midscale trains with a total production capacity exceeding 10 million tonnes per annum (mtpa). Upon full completion, the entire Corpus Christi facility's capacity will exceed 25 mtpa of LNG.

Positive

• First LNG production achieved at Train 1
• Project completion expected 6+ months ahead of schedule
• High completion rates in engineering (96.8%) and procurement (97.2%)
• Total facility capacity will increase to 25+ mtpa upon completion

Negative

• Construction phase still at relatively low completion rate (39.2%)

Insights

Energy Infrastructure Analyst

The successful early production of LNG at Train 1 of Corpus Christi Stage 3 marks a pivotal milestone for Cheniere. The six-month acceleration in the completion timeline signals exceptional project execution and will enable earlier revenue generation. With 75.9% overall project completion and construction at 39.2%, the progress indicates strong momentum despite the complexity of LNG infrastructure development.

The additional 10 mtpa capacity from CCL Stage 3 will significantly boost Cheniere's production capabilities, strengthening its position as a leading U.S. LNG exporter. This expansion comes at an opportune time when global LNG demand is robust, particularly from Europe and Asia. The project's advancement will enhance Cheniere's ability to capitalize on long-term LNG supply contracts and spot market opportunities.

Think of this like adding a new production line in a factory months ahead of schedule - it means earlier sales, better capital efficiency and increased market share. For investors, this accelerated timeline translates to faster return on investment and potentially higher near-term earnings than initially projected.

Project Management Expert

The execution metrics of CCL Stage 3 reveal impressive project management efficiency. The high completion rates in engineering (96.8%) and procurement (97.2%) demonstrate excellent front-end planning. The lower construction completion (39.2%) is normal for this project phase, with critical path activities progressing as expected.

Achieving first LNG production ahead of schedule, especially in a complex project of this scale, indicates superior risk management and coordination between Cheniere and Bechtel. The early completion provides a competitive advantage in securing additional LNG contracts and optimizing operational ramp-up. This successful execution enhances Cheniere's credibility for future expansion projects and strengthens its relationship with Bechtel, a important partner in the LNG infrastructure space.

HOUSTON--(BUSINESS WIRE)-- Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE: LNG) today announced that liquefied natural gas (“LNG”) was produced for the first time from the first train (“Train 1”) of the Company’s Corpus Christi Stage 3 Liquefaction Project (“CCL Stage 3”). The commissioning process continues, and Cheniere expects substantial completion of Train 1 to be achieved at the end of the first quarter of 2025, over six months ahead of the guaranteed completion date. Upon substantial completion, Bechtel Energy, Inc. (“Bechtel”) will transfer care, custody and control of the completed train to Cheniere.

Full notice to proceed on CCL Stage 3 was issued to Bechtel by Cheniere in June 2022. CCL Stage 3 consists of seven midscale trains, with an expected total production capacity of over 10 million tonnes per annum (“mtpa”) of LNG. As of November 30, 2024, overall project completion for CCL Stage 3 was 75.9%, which reflects engineering 96.8% complete, procurement 97.2% complete, subcontract work 87.7% complete and construction 39.2% complete. Upon substantial completion of all seven trains of CCL Stage 3, the expected total production capacity of the Corpus Christi liquefaction facility will be over 25 mtpa of LNG.

About Cheniere

Cheniere Energy, Inc. is the leading producer and exporter of LNG in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with total production capacity of approximately 45 mtpa of LNG in operation and an additional 10+ mtpa of expected production capacity under construction. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.

For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, filed with the Securities and Exchange Commission.

Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere’s financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding regulatory authorization and approval expectations, (iii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third-parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, (vii) statements relating to Cheniere’s capital deployment, including intent, ability, extent, and timing of capital expenditures, debt repayment, dividends, share repurchases and execution on the capital allocation plan and (viii) statements relating to our goals, commitments and strategies in relation to environmental matters. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere’s periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241224723405/en/

Cheniere Energy, Inc.

Investors

Randy Bhatia 713-375-5479

Frances Smith 713-375-5753



Media Relations

Eben Burnham-Snyder 713-375-5764

Bernardo Fallas 713-375-5593

Source: Cheniere Energy, Inc.

FAQ

When will Cheniere's Corpus Christi Stage 3 Train 1 be substantially completed?

Train 1 is expected to achieve substantial completion by the end of the first quarter of 2025, more than six months ahead of the guaranteed completion date.

What is the total LNG production capacity of Cheniere's CCL Stage 3 project?

The CCL Stage 3 project will have a total production capacity of over 10 million tonnes per annum (mtpa) of LNG across its seven midscale trains.

What is the current completion status of Cheniere's CCL Stage 3 project?

As of November 30, 2024, the project is 75.9% complete overall, with engineering at 96.8%, procurement at 97.2%, subcontract work at 87.7%, and construction at 39.2%.

What will be the total LNG production capacity of Cheniere's Corpus Christi facility after Stage 3 completion?

Upon completion of all seven trains in Stage 3, the total production capacity of the Corpus Christi facility will exceed 25 mtpa of LNG.