Recently, the company initiated a project to offer liquefaction services at the Sabine Pass LNG terminal, which facilitate natural gas liquefaction, export of LNG, as well as import and re-gasifying LNG from overseas. The liquefaction project would be up to four LNG trains, each train with a nominal production capacity of 4 million tons per annum. LNG export from the Sabine Pass LNG terminal will probably start by 2015.
During the first quarter of 2011, Cheniere's income from operations was $23.6 million, compared to $31 million for the comparable period in 2010 due to lower derivative gains and expenditure from Sabine Pass LNG terminal. LNG terminal and pipeline development expenses grew to $7.7 million for the quarter compared to the corresponding period in 2010, driven by expenses related to the proposed liquefaction project at Sabine Pass LNG terminal.Analysts rate an impressive 86% buy on the stock with an estimated upside of 50%.