Cheniere’s subsidiary Cheniere Energy Partners (Cheniere Partners) has made a positive FID for Train 6 of the Sabine Pass Liquefaction Project (SPL Project) in Cameron Parish, Louisiana, and Cheniere Partners has issued full notice to proceed with construction to Bechtel.
Furthermore, Cheniere Energy’s Board of Directors has approved a comprehensive capital allocation framework for the company that prioritises reinvestment of cash flows to grow Cheniere’s LNG platform, achievement of improved credit metrics for the company’s liquefaction project entities and on a consolidated basis, and return of excess capital to shareholders through a framework that provides the company flexibility to adapt to changes in growth opportunities and market conditions.
Cheniere expects to generate over $9 billion of available cash through the first half of 2024. The capital allocation framework provides for the following allocation through the forecast period of approximately five years:
- Growth Investments– Reinvest cash flows to fund accretive projects using at least 50 percent equity funding.
- Sabine Pass Train 6 – Over 50 percent equity investment.
- Corpus Christi Stage 3 – At least 50 percent equity investment for expansion project adjacent to the Corpus Christi Liquefaction project (CCL Project) with total expected nominal production of approximately 9.5 Mtpa, for which a positive Final Investment Decision is expected as early as 2020.
- Debottlenecking Projects – capital investments to increase production of existing liquefaction platform.
“The capital allocation framework we announced today prioritises continued investment in our LNG platform through new high-return growth projects, beginning with Sabine Pass Train 6, on which we have made a positive FID and have issued full notice to proceed to Bechtel. We believe the framework will also strengthen the balance sheets across our corporate structure, which is vital to our sustained growth, and enables us to return excess capital to shareholders through share repurchases,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “The market-leading execution we have achieved across our world-class LNG platform has provided stable and growing cash flow, which forms the foundation for this capital allocation framework, and we remain committed to delivering long-term shareholder value through growth.”
For more information visit www.cheniere.com