Michael Webber

Michael Webber of Webber Research & Advisory asked about the gas treatment requirements for the Argentina projects, specifically if new capacity needs to be built and whether its timing poses a risk to the charter start dates.

Answer

CEO Karl Fredrik Staubo responded that the Vaca Muerta gas is very lean, requiring minimal treatment, and the necessary facilities are mostly in place. He stated that the construction timeline for any associated infrastructure is well within the project schedule and does not pose a significant risk, as over a year of planning is already complete.

Michael Webber of Webber Research sought details on the Foran Energy deal, questioning if it signals a new class of Chinese buyers emerging from market reforms. He also asked about the impact of ESG concerns, specifically around frac gas sourcing, on securing future European contracts.

Answer

EVP & CCO Anatol Feygin and President & CEO Jack Fusco confirmed the Foran deal is a direct result of Chinese market reforms and is not a one-off. Regarding ESG, Fusco and Feygin stated they are proactively addressing decarbonization by quantifying their emissions and engaging with European partners, viewing it as a tailwind for their business.

Michael Webber inquired about the likelihood of force majeure claims on long-term contracts across the broader LNG industry. He also asked what conditions would prompt Cheniere to consider acquiring a struggling greenfield project to add optionality and diversity.

Answer

President & CEO Jack Fusco expressed confidence in Cheniere's contracts, stating they have no force majeure risk due to built-in cancellation flexibility. On acquisitions, Jack Fusco and EVP & CFO Michael Wortley emphasized that the company's organic growth projects at Corpus Christi and Sabine Pass are economically and strategically superior to external opportunities they have reviewed.