Cheniere Energy Keeps Locking in a Profitable Future

With a slew of new long-term LNG contracts in place, Cheniere Energy Partners and Cheniere Energy look better and better.

Tyler Crowe
Tyler Crowe
Jul 28, 2014 at 11:16AM
Energy, Materials, and Utilities

One thing that might make investors apprehensive about exporting LNG from the U.S. is that we have no idea where prices are going to be five to 10 years from now, and perhaps prices domestically won't be attractive enough to sell gas elsewhere.

If this is one of the reasons that you have been skeptical of Cheniere Energy, then you may have missed something, because it has locked up a majority of its capacity in 20-year contracts that aren't dependent on the price of U.S. gas for Cheniere to make a profit. Once Cheniere Energy Partners' Sabine Pass facility is up and running by late 2015-2016, it will have more than 75% of its volumes locked into these long-term contracts.

Tune into the video below to find out why these contracts give Cheniere Energy a very predictable cash flow model for those looking for a very steady income investment over the next several years.