Great News for Cheniere Energy and LNG Investors
The impact of the closure of the Strait of Hormuz won't be short-term, even if it's reopened in 2026.
Great News for Cheniere Energy and LNG Investors
Overview
While liquefied natural gas (LNG) stocks, such as Cheniere Energy (NYSE: LNG), have been traded as a proxy for negotiations over the immediate reopening of the Strait of Hormuz, the reality is that the impact will last longer than many think. In addition, Cheniere recently provided a positive update on the most important part of the stock's investment case.
The company recently told investors about "the substantial completion of Train 6 of the Corpus Christi Liquefaction (CCL) Stage 3 Project in Texas." LNG trains are "trains" of independent equipment that take natural gas and convert it into LNG for export. The more trains, the more LNG export capacity.
Details
Cheniere plans seven additional mid-scale trains for CCL, adding more than 10 million tonnes per annum (mtpa) and raising CCL's capacity above 25 mtpa, as well as the overall company capacity to 55 mtpa. Another two trains (8 & 9) will add 5 mtpa by the end of 2028, and expansion projects at Sabine Pass (SBL) mean the company has "line of sight to potentially surpass 100 mtpa of LNG production capacity by the mid-2030s."
Source
Originally published at www.fool.com.
