Stock Update (NYSE:LNG): Cheniere Energy, Inc. Marketing and ENGIE Sign 5-Year LNG Sale and Purchase Agreement

Cheniere Energy, Inc. (NYSEMKT:LNG) announced that its wholly owned subsidiary, Cheniere Marketing International LLP (“Cheniere Marketing”) has entered into a 5-year Sale and Purchase Agreement (“SPA”) with ENGIE S.A. for the delivery of liquefied natural gas (“LNG”) cargoes on an ex-ship basis (“DES”) primarily to the Montoir de Bretagne LNG regasification terminal in France. The SPA covers the delivery of up to 12 cargoes per year, or up to approximately 222 million MMBtus in total, from 2018 to 2023. Cheniere Marketing will sell the volumes at contract prices linked to Northern European indices.

Volumes will be sourced from Cheniere Marketing’s global LNG supply portfolio, which includes rights under separate SPAs with Sabine Pass Liquefaction, LLC and Corpus Christi Liquefaction, LLC to purchase any LNG produced from the Sabine Pass and Corpus Christi liquefaction projects in excess of that required for other customers. On a combined basis, Cheniere Marketing’s LNG portfolio is expected to have approximately 9 million tonnes per annum (“mtpa”) of LNG available from the nine liquefaction trains being developed at Sabine Pass and Corpus Christi.

“This SPA with ENGIE furthers our strategy of supplying LNG to European markets and diversifies our marketing portfolio with sales tied to Northern European price indices. Deliveries are expected to be made to the Montoir de Bretagne LNG terminal or to alternative delivery points as determined by our customer,” said Charif Souki, Chairman and CEO of Cheniere. (Original Source)

Shares of Cheniere Energy closed yesterday at $45.06. LNG has a 1-year high of $82.32 and a 1-year low of $44.25. The stock’s 50-day moving average is $50.45 and its 200-day moving average is $65.12.

On the ratings front, Cheniere has been the subject of a number of recent research reports. In a report issued on October 13, BTIG analyst William Frohnhoefer maintained a Buy rating on LNG, with a price target of $100, which represents a potential upside of 121.9% from where the stock is currently trading. Separately, on October 12, Barclays’ Christine Cho maintained a Buy rating on the stock and has a price target of $64.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, William Frohnhoefer and Christine Cho have a total average return of -8.8% and 10.2% respectively. Frohnhoefer has a success rate of 14.0% and is ranked #3585 out of 3804 analysts, while Cho has a success rate of 50.0% and is ranked #1677.

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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