About Cheniere Energy

Cheniere Energy, Inc., an energy infrastructure company, engages in the liquefied natural gas (LNG) related businesses. The company provides clean, secure and affordable LNG to integrated energy companies, utilities and energy trading companies around the world. The company aspires to conduct its business in a safe and responsible manner, delivering a reliable, competitive and integrated source of LNG to its customers. The company is the largest producer of LNG in the United States and the second largest LNG operator globally, based on the total production capacity of its liquefaction facilities, which totals approximately 45 million tonnes per annum (mtpa) as of December 31, 2023. The company owns and operates a natural gas liquefaction and export facility located in Cameron Parish, Louisiana at Sabine Pass (the Sabine Pass LNG Terminal), one of the largest LNG production facilities in the world, through its ownership interest in and management agreements with CQP, which is a publicly traded limited partnership. As of December 31, 2023, the company owned 100% of the general partner interest, a 48.6% limited partner interest and 100% of the incentive distribution rights of CQP. The Sabine Pass LNG Terminal has six operational Trains, for a total production capacity of approximately 30 mtpa of LNG (the SPL Project). The Sabine Pass LNG Terminal also has operational regasification facilities that include five LNG storage tanks with aggregate capacity of approximately 17 billion cubic feet equivalent (Bcfe) and vaporizers with regasification capacity of approximately 4 billion cubic feet per day (Bcf/d), as well as three marine berths, two of which can accommodate vessels with nominal capacity of up to 266,000 cubic meters and the third berth which can accommodate vessels with nominal capacity of up to 200,000 cubic meters. The company also owns and operates through CTPL, a subsidiary of CQP, a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several interstate and intrastate pipelines (the Creole Trail Pipeline). Additionally, the company owns and operates a natural gas liquefaction and export facility located near Corpus Christi, Texas (the Corpus Christi LNG Terminal) through CCL, which has natural gas liquefaction facilities consisting of three operational Trains for a total production capacity of approximately 15 mtpa of LNG, three LNG storage tanks with aggregate capacity of approximately 10 Bcfe and two marine berths that can each accommodate vessels with nominal capacity of up to 266,000 cubic meters. The company is constructing an expansion of the Corpus Christi LNG Terminal (the Corpus Christi Stage 3 Project) for seven midscale Trains with an expected total production capacity of over 10 mtpa of LNG. The company also owns and operates through CCP a 21.5-mile natural gas supply pipeline that interconnects the Corpus Christi LNG Terminal with several interstate and intrastate natural gas pipelines (the Corpus Christi Pipeline and together with the Trains, storage tanks, and marine berths at the Corpus Christi LNG Terminal and the Corpus Christi Stage 3 Project, the CCL Project). The company has contracted substantially all of its anticipated production capacity under SPAs, in which its customers are generally required to pay a fixed fee with respect to the contracted volumes irrespective of their election to cancel or suspend deliveries of LNG cargoes, and under IPM agreements, in which the gas producer sells natural gas to it on a global LNG or natural gas index price. Through its SPAs and IPM agreements, the company has contracted approximately 95% of the total anticipated production from the SPL Project and the CCL Project (collectively, the Liquefaction Projects) through the mid-2030s with approximately 16 years of weighted average remaining life as of December 31, 2023, excluding volumes from contracts with terms less than 10 years and volumes that are contractually subject to additional liquefaction capacity beyond what is in construction or operation. The company also markets and sells LNG produced by the Liquefaction Projects that is not contracted by CCL or SPL through its integrated marketing function. The company has increased available liquefaction capacity at its Liquefaction Projects as a result of debottlenecking and other optimization projects. The company holds significant land positions at both the Sabine Pass LNG Terminal and the Corpus Christi LNG Terminal, which provide opportunity for further liquefaction capacity expansion. In March 2023, certain of the company’s subsidiaries submitted an application with the FERC under the Natural Gas Act (the NGA) for an expansion adjacent to the CCL Project consisting of two midscale Trains with an expected total production capacity of approximately 3 mtpa of LNG (the CCL Midscale Trains 8 & 9 Project). Additionally, in May 2023, certain subsidiaries of CQP entered the pre-filing review process with the FERC under the National Environmental Policy Act (NEPA) for an expansion adjacent to the SPL Project with a potential production capacity of up to approximately 20 mtpa of total LNG capacity, inclusive of estimated debottlenecking opportunities (the SPL Expansion Project). The development of the CCL Midscale Trains 8 & 9 Project, the SPL Expansion Project or other projects, including infrastructure projects in support of natural gas supply and LNG demand, will require, among other things, acceptable commercial and financing arrangements before it makes a positive FID. Sabine Pass LNG Terminal Liquefaction Facilities and Expansion Project The Sabine Pass LNG Terminal is one of the largest LNG production facilities in the world with six Trains, five storage tanks and three marine berths. Additionally, in May 2023, certain subsidiaries of CQP entered the pre-filing review process with the FERC under the NEPA for the SPL Expansion Project. Natural Gas Supply, Transportation and Storage SPL has secured natural gas feedstock for the SPL Project through long-term natural gas supply agreements, including an IPM agreement. SPL Stage V has also entered into an IPM agreement to supply the SPL Expansion Project, subject to Cheniere making a positive FID on the first train of the SPL Expansion Project. Additionally, to ensure that SPL is able to transport natural gas feedstock to the SPL Project and manage inventory levels, it has entered into firm pipeline transportation and storage contracts with third parties and CTPL. Regasification Facilities The Sabine Pass LNG Terminal has operational regasification capacity of approximately 4 Bcf/d and aggregate LNG storage capacity of approximately 17 Bcfe. SPLNG has a long-term, third party TUA for 1 Bcf/d with TotalEnergies Gas & Power North America, Inc. (TotalEnergies), under which TotalEnergies is required to pay fixed monthly fees, whether or not it uses the regasification capacity it has reserved. Prior to its cancellation effective December 31, 2022, SPLNG also had a TUA for 1 Bcf/d with Chevron U.S.A. Inc. (Chevron). Approximately 2 Bcf/d of the remaining capacity has been reserved under a TUA by SPL, which also has a partial TUA assignment agreement with TotalEnergies. Corpus Christi LNG Terminal Liquefaction Facilities and Expansion Projects The Corpus Christi LNG Terminal includes three Trains, three storage tanks, two marine berths and the construction of the Corpus Christi Stage 3 Project with seven midscale Trains. Additionally, in March 2023, certain of the company’s subsidiaries submitted an application with the FERC under the NGA for the CCL Midscale Trains 8 & 9 Project. Natural Gas Supply, Transportation and Storage CCL has secured natural gas feedstock for the Corpus Christi LNG Terminal through long-term natural gas supply agreements, including IPM agreements. Additionally, to ensure that CCL is able to transport and manage the natural gas feedstock to the Corpus Christi LNG Terminal, it has entered into transportation precedent and other agreements to secure firm pipeline transportation and storage capacity from third parties and CCP. Business Strategy The company’s primary business strategy is to be a full-service LNG provider to worldwide end-use customers. The key elements of the company’s strategy include safely, efficiently and reliably operating and maintaining its assets; procuring natural gas and pipeline transport capacity to its facilities; providing value to its customers through destination flexibility, options not to lift cargoes and diversity of price and geography; continuing to secure long-term customer contracts to support its planned expansion, including the FID of potential expansion projects beyond the Corpus Christi Stage 3 Project; completing its construction projects safely, on-time and on-budget; maximizing the production of LNG to serve its customers; and strategically identifying actionable and economic environmental solutions. Marketing The company markets and sells LNG produced by the Liquefaction Projects that is not contracted by CCL or SPL to other customers through Cheniere Marketing, its integrated marketing function. The company has, and continues to develop, a portfolio of long-, medium- and short-term SPAs to transport and deliver commercial LNG cargoes to locations worldwide. Customers In 2023, the company’s customers included BG Gulf Coast LNG, LLC and affiliates; Naturgy LNG GOM, Limited; and Korea Gas Corporation. Governmental Regulation The design, construction, operation, maintenance and expansion of the company’s liquefaction facilities, the import or export of LNG and the purchase and transportation of natural gas in interstate commerce through its pipelines (including its Creole Trail Pipeline and Corpus Christi Pipeline) are highly regulated activities subject to the jurisdiction of the FERC pursuant to the Natural Gas Act of 1938, as amended (the NGA). The company is permitted to make the sale of natural gas for resale in interstate commerce pursuant to a blanket marketing certificate granted by the FERC with the issuance of its Certificate of Public Convenience and Necessity to its marketing affiliates. In order to site, construct and operate the company LNG terminals, it received and is required to maintain authorizations from the FERC under Section 3 of the NGA, as well as other material governmental and regulatory approvals and permits. The company’s LNG terminals, as well as the Creole Trail Pipeline and the Corpus Christi Pipeline are subject to regulation by PHMSA. Throughout the life of the company’s LNG terminals and its pipelines, it is subject to regular reporting requirements to the FERC, the Department of Transportation’s (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) and applicable federal and state regulatory agencies regarding the operation and maintenance of its facilities. The company’s European trading activities, which are primarily established in and operated out of the United Kingdom (U.K.), are subject to a number of European Union (EU) and the U.K. laws and regulations, including but not limited to: The European Market Infrastructure Regulation (EMIR), which was designed to increase the transparency and stability of the European Economic Area (EEA) derivatives markets; The Regulation on Wholesale Energy Market Integrity and Transparency (REMIT), which prohibits market manipulation and insider trading in EEA wholesale energy markets and imposes various transparency and other obligations on participants active in these markets; The Markets in Financial Instruments Directive and Regulation (MiFID II), which sets forth a financial services framework across the EEA, including rules for firms engaging in investment services and activities in connection with certain financial instruments, including a range of commodity derivatives; and The Market Abuse Regulation (MAR), which was implemented to create an enhanced market abuse framework, and which applies to all financial instruments listed or traded on EEA trading venues, as well as other over-the-counter (OTC) financial instruments priced on, or impacting, the trading venue contract. To the extent the company’s trading activities have a nexus with the European Economic Area (EEA), it complies with the EEA Rules. In addition to the U.K. Onshored Rules (one set of rules that apply only in the U.K.), the company is subject to a separate, the U.K.-specific regime that is not based on prior EU/EEA legislation. This is primarily set out in the U.K.’s Financial Services and Markets Act 2000 (FSMA) and Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO). The company’s LNG terminals are subject to the federal Clean Air Act (CAA) and comparable state and local laws. The siting and construction of the company’s LNG terminals within the coastal zone is subject to the requirements of the Coastal Zone Management Act (CZMA). The company’s LNG terminals are subject to the federal Clean Water Act (CWA) and analogous state and local laws. History Cheniere Energy, Inc. was founded in 1983. The company was incorporated in 1983.