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Jack Fusco

Cheniere Energy, Inc. confirmed a long-term commitment to the Coastal Bend region last week in a mixed earnings report that initially spooked investors but not financial analysts.

The company reported a revenue boom, thanks in large part to the high global demand for natural gas. The higher price of natural gas, along with what the company called “reliable operations,” sent Cheniere’s revenue skyrocketing in the third quarter of 2022.

In the quarter that ended Sept. 30, Cheniere reported revenues of $8.8 billion compared to $3.2 billion in the same quarter last year. That’s a 177-percent increase. For the first nine months of the year, Cheniere’s revenue has grown from $9.3 billion in 2021 to $24.3 billion in the same period this year.

“The Cheniere team continued to fire on all cylinders throughout the third quarter, as evidenced by our strong quarterly earnings, confirmation of our recently revised 2022 guidance, and the implementation of our ‘20/20 Vision’ long-term capital allocation plan,” said Cheniere President and CEO, Jack Fusco. “Our demonstrated success throughout our organization continues to position Cheniere as a leader in the global LNG market and would not be possible without our team’s relentless dedication to safe and reliable operations.”

For the quarter, Cheniere posted a net loss of $2.4 billion, and has shown a loss of $2.5 billion for the first nine months of the year. However, the adjusted profits – eliminating non-recurring costs that include capital work – came in at $2.8 billion.

Of note to the Coastal Bend region and San Patricio County is the importance Cheniere has placed on the continued growth of the Gregory operations.

“We look forward to reinforcing our reputation on execution and bringing much-needed new LNG supply to the market from Corpus Christi Stage 3 beginning in late 2025,” Fusco said.

Construction has already begun at the Gregory site to add seven midscale trains that will increase LNG production by 10 million metric tons per year. And in the final paragraph of the company’s earnings report, Cheniere confirmed it is in the developmental stages of adding two more midscale trains that will produce another 3 million metric tons each year.

For comparison, Cheniere’s largest LNG facility is based in Sabine Pass, La. According to the company, they produce 30 million metric tons of LNG each year at that facility. With the current 15 million metric tons being produced in Gregory, along with an additional 10 million in the Stage 3 construction and then another 3 million in two more trains, Cheniere will produce nearly the same amount of LNG in their Gregory facility as they do in Sabine Pass – 28 million metric tons each year.

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