Houston-based LNG player Cheniere Energy reported a net loss of $267.7 million for the three months ended March 31, 2015, compared to a net loss of $97.8 million for the comparable 2014 period.
Significant items contributing to losses of $231.0 million for the three months ended March 31, 2015 are related to derivative losses due primarily to contingent interest rate derivatives entered into and changes in long-term LIBOR during the period, losses on early extinguishment of debt related to the write-off of debt issuance costs by Sabine Pass Liquefaction in connection with the refinancing of a portion of its credit facilities in March 2015, and for development expenses primarily for the liquefaction facilities being developed by the company near Corpus Christi, Texas, Cheniere said in a statement.
Sabine Pass Liquefaction project
Cheniere continues to make progress on the Liquefaction project, which is being developed for up to six trains, each with an expected nominal production capacity of approximately 4.5 million tonnes per annum, at the Sabine Pass LNG terminal adjacent to the existing regasification facilities.
The Trains are in various stages of development.
The company is looking to make a final investment decision to commence construction of Trains 5 and 6 based upon, among other things, entering into EPC contracts, entering into acceptable commercial arrangements, receiving all regulatory approvals and obtaining adequate financing. Construction on Train 5 is expected to commence upon receiving all regulatory approvals and obtaining financing followed by Train 6 upon entering into acceptable commercial arrangements, receiving all regulatory approvals and obtaining financing.
Corpus Christi Liquefaction project
Cheniere continues to make progress on the development of the Corpus Christi Liquefaction project, which is being designed for up to three Trains with expected aggregate nominal production capacity of approximately 13.5 mtpa of LNG.
Cheniere is looking to make a final investment decision to commence construction of the Corpus Christi Liquefaction project based upon, among other things, entering into acceptable commercial arrangements, receiving all regulatory approvals and obtaining adequate financing. To date, Cheniere has obtained financing commitments sufficient to support the financing of all three Trains. The remaining regulatory approvals are expected to be received during the first half of 2015. The construction on the first two Trains is expected to start in due course upon receiving all regulatory approvals followed by the third Train upon entering into additional sale and purchase agreements.
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Image: Cheniere