Cheniere Energy, Whistler Pipeline to Build New Joint Venture Pipeline

Trending News ☀️

Cheniere Energy($NYSEAM:LNG) and Whistler Pipeline have announced that they will be moving forward with construction of the ADCC Pipeline, a new joint venture pipeline. The pipeline will be 43 miles long and will extend from the terminus of the Whistler Pipeline to Cheniere’s Corpus Christi liquefaction facility in Texas. The ADCC Pipeline is expected to have the capacity to transport 1.7B cf/day of natural gas, which is expandable to 2.5B cf/day. Service is anticipated to begin in 2024, pending the receipt of regulatory and other approvals.

Stock Price

On Monday, Cheniere Energy stock opened at $163.2 and closed at $168.5, up by 0.7% from last closing price of 167.2. This new pipeline will transport natural gas from the Permian Basin in Texas to the Gulf Coast. This is good news for Cheniere Energy as it will help them transport natural gas to their customers more efficiently.

VI Analysis

CHENIERE ENERGY is a publicly traded company engaged in the business of developing, constructing and operating liquefied natural gas terminals and related facilities. The company’s terminals are located in Cameron Parish, Louisiana and Corpus Christi, Texas in the United States. CHENIERE ENERGY’s liquefaction facilities are designed to produce LNG from natural gas delivered to the facility. The company is also developing an export terminal in Sabine Pass, Louisiana. According to VI Risk Rating, CHENIERE ENERGY is a medium risk investment in terms of financial and business aspects. The company’s financial risk is mainly due to its high leverage and dependence on capital markets for funding. Its business risk is due to the possibility of cost overruns and delays in the construction of its liquefaction facilities. However, the company’s long term potential is reflected in its strong fundamentals, including its large reserves of natural gas and its strategic location in the Gulf of Mexico.

Summary

The joint venture is a response to the growing demand for transportation of crude oil from the Permian Basin, which is currently the largest oil-producing region in the United States. The new pipeline will provide much-needed capacity to move crude oil from the Permian Basin to refining markets along the Gulf Coast. Cheniere Energy is a leading developer of liquefied natural gas infrastructure and is one of the largest investors in the Permian Basin. Whistler Pipeline is a leading midstream company with extensive experience in developing and operating crude oil pipelines. Cheniere Energy will serve as the operator of the new pipeline.