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    Marc Solecitto

    Research Analyst at Barclays PLC

    Marc Solecitto's questions to Cheniere Energy Partners (CQP) leadership

    Marc Solecitto's questions to Cheniere Energy Partners (CQP) leadership • Q3 2022

    Question

    Marc Solecitto from Barclays PLC inquired about the current marginal cost of new LNG supply and liquefaction fees, given rising interest rates and EPC costs. He also asked if Cheniere has begun locking in its open exposure for 2023 and if that is reflected in the 150 TBtu open capacity figure.

    Answer

    EVP and CCO Anatol Feygin acknowledged that while competitive pressures keep buyer expectations low, inflation and interest rates make new projects challenging. EVP and CFO Zach Davis added that Cheniere is insulated by CPI-based escalators in its SPAs. Davis confirmed that of the 150 TBtu open for 2023, margins have been locked for about 20 TBtu, with the remaining 130 TBtu subject to market moves.

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    Marc Solecitto's questions to Cheniere Energy Partners (CQP) leadership • Q2 2022

    Question

    Marc Solecitto from Barclays asked for the latest thinking on the structure of future expansions beyond Stage III, questioning whether Cheniere would pursue larger scale trains or modular additions. He also inquired if recent Russian gas curtailments have altered discussions with European customers.

    Answer

    President and CEO Jack Fusco stated his preference is for expansions that can be executed quickly and in a financially disciplined manner, indicating that adding more mid-scale trains currently appears to be the most effective path. EVP and CCO Anatol Feygin added that discussions with European customers have been robust all year, with recent events adding a sense of urgency, and noted that European demand can be served through contracts with global portfolio players.

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