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Cheniere Energy Inc LNG

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Morningstar’s Analysis

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Cheniere Is Well Positioned to Deal With New EU Methane Rules

Stephen Ellis Sector Strategist

Analyst Note

| Stephen Ellis |

We are highly bullish on liquefied natural gas demand over the long run, particularly from China. However, that doesn't mean that U.S. LNG exporters such as Cheniere have clear and unobstructed growth prospects as far as the eye can see, particularly on the ESG front. New EU rules, in place in 2024, aim to bring exactly that risk into sharp focus and disincentivize Europe from taking U.S. LNG exports. This shift means that Cheniere must pivot to show it can be a leader within the LNG industry very quickly unless it wants to lose access to a major LNG export market (40% of recent demand). The situation, in our view, calls for U.S. industry leadership to push for changes through the U.S. LNG supply chain in terms of reducing methane and carbon emissions, a role that Cheniere is willing to embrace.

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Company Profile

Business Description

Cheniere Energy owns and operates the Sabine Pass liquefied natural gas terminal via its stake in Cheniere Partners. It also owns the under-development Corpus Christi LNG terminals as well as Cheniere Marketing, which markets LNG using Cheniere's gas volumes.

Contact
700 Milam Street, Suite 1900
Houston, TX, 77002
T +1 713 375-5000
Sector Energy
Industry Oil & Gas Midstream
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Distressed
Employees 1,519

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