Cheniere Energy, Inc. LNG, a leading player in the liquefied natural gas (“LNG”) industry, has announced a significant achievement in its Corpus Christi Stage 3 Liquefaction Project (CCL Stage 3). The project has reached a milestone with the first production of LNG from Train 1, marking the commencement of a new phase in the company's expansion efforts. Although the commissioning process is still in progress, Cheniere expects Train 1 to be substantially completed by the end of the first quarter of 2025, which is more than six months ahead of schedule.
LNG’s CCL Stage 3: Expanding Production Capacity
The CCL Stage 3 project is an integral component of Cheniere's strategy to expand its liquefaction capacity and strengthen the company’s position in the global LNG market. The project consists of seven midscale LNG trains, designed to enhance the production capacity of the Corpus Christi Liquefaction facility in Texas. Once completed, the project will increase the facility's total production capacity to more than 25 million tons per annum (mtpa) of LNG.
Progress and Timeline for Completion
As of Nov. 30, 2024, the overall project completion was 75.9%, with substantial progress across various phases of the project. The engineering phase was nearly finished, with 96.8% of the work completed. Procurement efforts were also nearing completion, with 97.2% of the necessary materials and equipment secured. Subcontract work was 87.7% complete, and construction, though behind in comparison to other areas, had reached 39.2% completion.
The oil and gas storage and transportation company issued the full notice to proceed to Bechtel Energy, Inc., the project’s primary contractor, in June 2022. Since then, Bechtel has worked diligently to advance the project and Train 1's successful LNG production marks a major step forward. After substantial completion of Train 1, Bechtel will transfer care, custody and control of the completed train to Cheniere, marking the official handover of the unit for operation.
Role of Bechtel in the CCL Stage 3 Project
Bechtel Energy plays a crucial role in the execution of the CCL Stage 3 project. As the main contractor, Bechtel is responsible for overseeing the construction, engineering and procurement aspects of the project. The company's expertise in large-scale energy infrastructure projects has been instrumental in advancing the development of the seven midscale trains. This work is expected to help Cheniere meet the increasing demand for LNG in domestic and international markets.
Impact on Cheniere’s Long-Term Growth and Market Presence
The successful development of CCL Stage 3 will significantly enhance Cheniere's global LNG footprint. With the expansion of the Corpus Christi facility, Cheniere will further set its leadership in the global LNG industry, meeting the rising demand for cleaner energy sources. The project’s scale and scope position Cheniere as a key player in the energy transition, as countries around the world seek alternatives to coal and oil.
The addition of more than 10 mtpa in LNG production capacity from CCL Stage 3 will enable Cheniere to supply a larger volume of LNG to markets in Asia, Europe and beyond. This will also contribute to the company’s ability to diversify its customer base and strengthen long-term contracts with key global energy players.
Strategic Importance of CCL Stage 3 for U.S. LNG Exports
The Corpus Christi Liquefaction facility is one of the largest LNG export facilities in the United States and its expansion through CCL Stage 3 holds immense strategic importance for U.S. LNG exports. With its proximity to major natural gas pipelines and access to the Gulf Coast’s infrastructure, the Corpus Christi facility is well-positioned to serve global LNG demand.
CCL Stage 3 is expected to further enhance U.S. LNG exports, aligning with the broader goal of increasing energy exports from the United States. As countries around the world transition to natural gas as a cleaner energy source, U.S. LNG will play an increasingly important role in meeting global energy needs while supporting energy security.
Road Ahead: Substantial Completion and Prospects
Cheniere's aggressive timeline for the completion of Train 1 and the overall CCL Stage 3 project highlights the company's commitment to enhancing its LNG production capabilities. With the expected substantial completion of Train 1 at the end of first-quarter 2025, Cheniere is poised to accelerate its LNG production and delivery to international markets.
Looking ahead, Houston-based the leading producer and exporter of LNG will continue to focus on completing the remaining six trains of CCL Stage 3, which will bring the facility’s total LNG production capacity to more than 25 mtpa. Once all seven trains are operational, the Corpus Christi Liquefaction facility will become one of the largest LNG export terminals in the world, cementing Cheniere’s leadership in the global LNG market.
LNG’s Zacks Rank & Other Key Picks
Currently, LNG has a Zacks Rank #2 (Buy).
Investors interested in the energy sector might look at some other top-ranked stocks like TechnipFMC plc FTI and Oceaneering International, Inc. OII each sporting a Zacks Rank #1 (Strong Buy) and Ovintiv Inc. OVV, carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TechnipFMC is valued at $12.35 billion. In the past year, its shares have risen 43.7%. London-based FTI is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry.
Oceaneering International is valued at $2.55 billion. In the past year, its shares have risen 20.8%. OII is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.
Ovintiv is valued at $10.07 billion. This company currently pays a dividend of $1.2 per share, or 3.1%, on an annual basis. OVV is an independent energy producer, which explores and churns out oil and natural gas from diverse assets located in the United States and Canada.
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