Even as Sabine Pass shipments decline, Train 6 ahead of schedule

(Courtesy Cheniere Energy)

LNG cargoes from Cheniere Energy’s facilities in Louisiana and Texas dropped to 78 in the second quarter of 2020—down from from 104 during the same period last year, according to the company’s second-quarter earnings report.

The company, experiencing fallout from the coronavirus pandemic, low demand and low prices, declined to reveal how many cargoes were canceled in the second quarter of 2020. According to the terms of long-term agreements, however, Cheniere is paid for canceled cargoes—a filing with the U.S. Securities and Exchange Commission indicates it was paid $708 million for those cargoes.

Even so, Cheniere continues to move ahead with construction at Sabine Pass—in fact, Train 6 is expected to be completed in the second half of 2022, rather than the first quarter 2023 as originally planned. Thus far, five trains are in operation, with 1,025 cargoes produced and exported.

Cheniere Energy reported a second quarter 2020 net earnings of $197 million or 78 cents per share, despite liquefied natural gas shipments declining 25% from a year ago. Those earnings compare to a net loss of $114 million or 44 cents per share in Q2 2019.

See the quarterly earnings presentation.