Cheniere Energy, Inc. (LNG) Marketing and Central El Campesino Sign 20-Year LNG Sale and Purchase Agreement

Cheniere Energy, Inc. (NYSEMKT:LNG) through its subsidiary, Cheniere Marketing International LLP (“Cheniere Marketing”), has entered into a liquefied natural gas (“LNG”) sale and purchase agreement (“SPA”) with Central El Campesino, under which Central El Campesino would purchase approximately 0.6 million tonnes per annum (“mtpa”) of LNG delivered ex-ship for 20 years beginning in 2019 from the Corpus Christi Liquefaction Project currently under construction near Corpus Christi, Texas.

Central El Campesino is developing a 640 MW gas-fired combined-cycle power plant in Chile which is expected to provide power into Chile’s Central Interconnected System (SIC). In the December 2014power auction, Central El Campesino won a bid to sell approximately 480 MW to local distribution companies (LDC’s), which would underpin the construction of the power plant. The LNG would be delivered, stored and regasified at the proposed floating storage regasification unit (FSRU), Penco Lirquén LNG Terminal.

Biobiogenera Executive Director Juan José Gana said “this SPA means certainty about the future of electricity supply for consumers, who today experience problems due to the high level of prices that affect them, and which limits the development opportunities of the country.”

Cheniere’s Executive Vice President of Marketing, Meg Gentle said “We look forward to being a reliable supplier of LNG to Central El Campesino for this important new gas-fired power plant, which will increase the availability of power and have a positive impact on the Chilean electricity market. This transaction is consistent with our strategy of working with customers on gas to power solutions and developing downstream LNG markets.”

The Central El Campesino power plant is being developed by the Chilean company Biobiogenera in association with Electricite de France (EDF). In order to reach a final investment decision and commence construction on the Central El Campesino power plant and the Penco Lirquén LNG Terminal, both projects must receive regulatory approvals and obtain financing. Cheniere is a fifty-percent partner in the Penco Lirquén LNG Terminal. (Original Source)

Shares of Cheniere Energy closed today at $70.16, up $2.07 or 3.04%. However, the shares are dropping a bit to $69.043 in after-hours trading following today’s earnings release. LNG has a 1-year high of $85 and a 1-year low of $58.10. The stock’s 50-day moving average is $68.36 and its 200-day moving average is $73.86.

On the ratings front, Cheniere Energy has been the subject of a number of recent research reports. In a report released today, BTIG analyst William Frohnhoefer reiterated a Buy rating on LNG, with a price target of $100, which implies an upside of 42.5% from current levels. Separately, on July 22, Global Hunter’s Sunil Sibal initiated coverage with a Buy rating on the stock and has a price target of $76.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, William Frohnhoefer and Sunil Sibal have a total average return of 12.1% and -3.8% respectively. Frohnhoefer has a success rate of 38.9% and is ranked #879 out of 3721 analysts, while Sibal has a success rate of 50.0% and is ranked #3018.

Cheniere Energy Inc is engaged in LNG-related businesses. It owns and operates the Sabine Pass LNG terminal in Louisiana through its ownership interest in and management agreements with Cheniere Energy Partners, L.P.

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