Cheniere Energy, an international energy company headquartered in Houston, Texas, 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$3.09 billion. After four tough quarters, strong LNG demand has provided a boost for Cheniere and the company has managed to exceed expectations, says GlobalData.
Upstream Oil & Gas Analyst at GlobalData, Steven Ho, said that 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,” Mr Ho said.
Cheniere is a supporter of a decarbonised economy along with the energy transition movement.
Cheniere and Shell previously announced a collaboration to deliver a carbon-neutral US LNG to Europe.
The LNG cargo was supplied from Cheniere’s Sabine Pass Liquefaction facility and delivered to Europe in April.
Offsets used were bought from Shell’s global portfolio of nature-based projects, with Cheniere purchasing the portion attributable to estimated carbon dioxide equivalent (CO2e) emissions associated with activities upstream of the FOB delivery point, including production and liquefaction.
Nature-based projects protect, transform or restore land and enable nature to add oxygen and absorb more CO2 emissions from the atmosphere.
Each carbon offset is subject to a third-party verification process and represents the avoidance or removal of 1 tonne of CO2e.
Cheniere also intends to provide more transparency with GHG emissions data in the first half of 2022 to remain accountable in mitigating emissions.