LNG cargo emissions data to be revealed

Thursday, 04 March 2021
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Cheniere Energy is to provide its LNG customers with greenhouse gas (GHG) emissions data.

The data will be associated with each LNG cargo produced at the Sabine Pass and Corpus Christi liquefaction facilities.

Called ‘Cargo Emissions Tags’ (CE Tags), they are designed to enhance environmental transparency by quantifying the estimated GHG emissions of LNG cargoes from the wellhead to the cargo delivery point. They are expected to be provided to customers in 2022.

“We believe significantly enhanced data-driven emissions transparency will support Cheniere, our customers and our suppliers as we work to identify tangible opportunities to quantify and improve environmental performance,” said Jack Fusco, Cheniere’s President and CEO. “We consider this announcement to be a critical first step for the industry. Cheniere will continuously work to improve the data incorporated in the CE Tags with the ultimate goal of providing dynamic GHG emissions data.”

The tags will be calculated using Cheniere’s proprietary lifecycle analysis (LCA) model, which was designed to incorporate the accounting frameworks from LCAs created by the US Department of Energy’s National Energy Technology Laboratory, and will use publicly available data from value chain participants, as well as operational data from both the Sabine Pass and Corpus Christi liquefaction facilities.

“As one of the largest consumers of natural gas on a daily basis in the US, and one of the largest producers of LNG worldwide, Cheniere is ideally positioned to collaborate with domestic and international value chain participants to provide improved transparency and advance the global transition to a lower-carbon future,” Fusco added.

Meanwhile, in its financial review, Cheniere announced that consolidated adjusted EBITDA was $1.05 bill for fourth quarter 2020 and $3.96 bill for full year, an increase of 35% compared to 2019.

Cheniere suffered a net loss of $194 mill, or $0.77 per share, for 4Q20 and net loss of $85 mill, or $0.34 per share, for 2020. The fourth quarter net loss was negatively impacted by non-cash changes in fair value of commodity derivatives.

The full year net loss was also negatively impacted by non-cash changes in fair value of commodity derivatives, as well as certain other non-operating losses.

For 2021 full year guidance, consolidated adjusted EBITDA was estimated at $4.1 bill - $4.4 bill and full year distributable cash flow guidance was $1.4 bill- $1.7 bill based on strong execution and improved market conditions. 

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