Houston liquefied natural gas company Cheniere Energy closed 2018 with a $471 million profit as LNG exports continue to grow. Cheniere is building a nearly 200-mile natural pipeline across Oklahoma to carry natural gas from the STACK play to connections in southern Oklahoma.
The company reported making $67 million of net income on nearly $2.4 billion of revenue during the fourth quarter of 2018. The figures are mixed when compared to the $127 million of net income on $1.7 billion of revenue during the fourth quarter of 2017 according to the Houston Chronicle.
The company’s fourth quarter figures allowed Cheniere to close 2018 with $471 million of net income on nearly $8 billion of revenue, which represented dramatic growth over the $393 million loss on $5.6 billion of revenue during 2017.
Cheniere reported exporting 273 shipments of LNG during 2018, a 33 percent increase from the 205 cargos the company sent out in 2017.
“We look forward to leveraging forward momentum for continued success in 2019,” Cheniere Energy CEO Jack Fusco said in a statement.
Cheniere owns and operates two LNG export terminals — one in Sabine Pass, Louisiana and the other in Corpus Christi Texas.
The company has been exporting from its Sabine Pass LNG facility since February 2016 and is bringing the first production unit at its Corpus Christi facility over the next few months.
Under its business model, Cheniere buys natural gas from shale basins around the United States that is pipelined to its facilities. Once there, the natural gas is supercooled and becomes a liquid, making it easier to transport.
Most of Cheniere’s customers are a utility companies in Europe and Asia that use the LNG to feed natural gas-fired power plants.
Shipments of LNG from the company’s two facilities have been delivered to 32 nations around the world.
The Oklahoma pipeline project is called the Midship and will result in transportation capacity of up to 1,440,000 Dth/d. It will connect new gas production from the STACK and SCOOP plays to the growing Gulf Coast and Southeast Markets via deliveries to existing pipelines.