Enel close to 20-year deal to buy natural gas from Cheniere


Cheniere Energy (LNG -1.7%) reportedly is close to securing its second large supply deal this week, as it nears a 20-year deal with Italian utility Enel (ENLAY) for 1B cubic meters/year of gas.

Earlier this week, LNG signed a 20-year supply deal with Spanish utility Endesa for gas from its proposed Corpus Christi plant in Texas.

LNG already has secured several sales deals from its Sabine Pass export plant in Louisiana and is now focusing on locking in customers for the Texas plant, even though U.S. regulators have not yet approved that site for exports.

Shares may be lower today because of a Credit Suisse downgrade to Neutral from Outperform, as LNG has climbed ~35% in two months and many of the company's near-term positives have been priced in.

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Comments (2)
  • Michael Bryant
    , contributor
    Comments (7233) | Send Message
     
    How much is the deal? What price is Enel going to pay (LNG)?
    3 Apr 2014, 08:43 PM Reply Like
  • jpmj4847
    , contributor
    Comments (571) | Send Message
     
    Not sure, but looking at the cost of LNG's terminals, one can be sure that it's not for peanuts ( twenty years...with ten years' options). Why / where are our USA companies, who can greatly profit from our cheap ng, not persuring deal of their own? Any surplus than let the bidding war begin! USA first! jpm
    5 Apr 2014, 01:25 AM Reply Like
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