Michael Lapides's questions to Cheniere Energy Partners (CQP) leadership • Q2 2022
Question
Michael Lapides from Goldman Sachs asked about the NESHAP compliance issue, the future of coal generation in Asia based on customer conversations, and the market liquidity for hedging open LNG capacity for the winter of 2023-2024.
Answer
President and CEO Jack Fusco stated a consent decree is a logical path for NESHAP compliance if needed. He and EVP and CCO Anatol Feygin noted Asian customers value the reliability and lower, stable pricing of long-term Henry Hub contracts over volatile spot LNG or coal. EVP and CFO Zach Davis explained that long-term financial hedging is currently unrealistic due to volatility, so the focus is on physical sales to creditworthy counterparties.