Houston, Texas-based LNG terminal operator Cheniere Energy has seen healthy LNG receiving terminal revenues.
Profits increased $65.1 million (43.4 million) and $103.3 million for Q3 and nine months ended 30 September 30 2009, largely as a result of the commencement of capacity payments under two third-party terminal use agreements that became effective on 1 April 2009 and 1 July 2009.
The decrease in marketing and trading revenues for Q3 and after nine months of $12.3 million and $13.1 million, respectively, was due to lower of cost or market adjustments of $15.8 million and $17.0 million for LNG inventory held at the Sabine Pass LNG receiving terminal. These losses were partially offset by gains from physical natural gas sales, derivative settlements and changes in the fair value of derivatives that occurred during the third quarter and nine months.
LNG receiving terminal and pipeline operating expenses increased $3.8 million and $21.5 million, respectively, for the quarter and nine months and depreciation, depletion and amortisation expense increased $7.0 million and $26.3 million, respectively, due to the placement into service of the Sabine Pass LNG receiving terminal and the Creole Trail pipeline during the second half of 2008.
Construction at the Sabine Pass LNG receiving terminal was mostly complete at the end of Q3 and the terminal is now fully operational with send-out capacity of 4.0 billion cubic feet a day (Bcf/d) and storage capacity of 16.9 billion cubic feet of natural gas equivalent (Bcfe).
Its estimated aggregate construction, commissioning and operating cost budget is approximately $1.559 billion, excluding financing costs.