Cheniere Energy will take a final investment decision (FID) on its 10-mta Corpus Christi Stage III project in 2022 once the company’s remaining investment and commercial parameters are met
The Corpus Christi Liquefaction facility is in Corpus Christi Bay in Texas. The stage III expansion of the project is being developed to include up to seven midscale liquefaction trains. Canadian supplier Tourmaline will supply 140,000 MMBtu/d of natural gas to Corpus Christi Stage III over 15 years from early 2023.
The company’s board of directors has approved a comprehensive, long-term capital allocation plan that includes a quarterly dividend of US$0.33 per share. The share dividend – the first in the company’s history – is payable to shareholders of record as of 3 November.
Cheniere expects financial results for 2021 at the high end of the guidance ranges, adding that the company has reached a cash flow inflection point and expects to generate close to US$10Bn of cumulative distributable cash flow (DCF) through 2024 with annual run-rate DCF of US$2.6–$3Bn.
Cheniere president and chief executive Jack Fusco said, “Over the past five years, we have successfully executed our operating, commercial and financial goals, which now serve as the foundation for this comprehensive capital allocation plan for Cheniere’s stakeholders. The plan is built from our guiding principles of maintaining a strong, sustainable balance sheet, funding financially disciplined accretive growth, and returning capital to shareholders through share repurchases and dividends.”
“Our accomplishments over the past five years have led us to this point, and the plan helps ensure Cheniere’s long-term success by strengthening our financial position, commencing meaningful shareholder returns, and committing to our disciplined approach to deploying growth capital.”
In addition, the sixth natural gas liquefaction unit at the Sabine Pass LNG terminal in Louisiana will be completed earlier than expected, in Q1 2022. When complete, the cumulative production capacity is expected to be about 30mta.
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