Cheniere Energy is off to a strong start in 2021 as the company had Q1 earnings of US$1.54 per share and generated revenue of US$3.09bn. After four tough quarters, strong LNG demand has provided a boost for Cheniere and the company has managed to exceed expectations, says GlobalData, a leading data and analytics company.
Steven Ho, Upstream Oil & Gas Analyst at GlobalData, comments: “Cheniere has been struggling to meet expectations for the past few quarters and needed the result this quarter to prove that its LNG business has long term resilience, as LNG demand is expected to continue growing through 2024. As the company claims, natural gas use in power generation capacity is expected to grow by an additional 300 GW by 2040, equivalent to 300 million tonnes of LNG. The majority of the demand comes from Asia, especially China, India and other Southeast Asia countries as these regions embark on major gas infrastructure expansion, further encouraged by a global effort to reduce GHG emissions and use cleaner fuels.”
Cheniere has also proven to be supporting a decarbonized economy along with the energy transition movement. Cheniere and Shell announced a collaboration to deliver a carbon-neutral US LNG to Europe. The LNG cargo was supplied from the Sabine Pass Liquefaction capacity, to be delivered to Europe in early April. Cheniere Energy will then retire the portion of carbon emission by purchasing the offset from Shell’s nature-based projects, which protect and redevelop natural ecosystem to absorb more CO2 emission from the atmosphere. The company intends to provide more transparency with GHG emissions data in the first half of 2022 to remain accountable in mitigating emissions.
