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Clean Energy Fuels (CLNE) Builds Third LNG Train at Boron Plant
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Clean Energy Fuels (CLNE - Free Report) announced that it has completed the construction of a third production train at its liquefied natural gas (LNG) plant in Boron, CA. As the largest plant of its kind in Southwest United States, the Boron plant now has the capacity to produce up to 270,000 gallons of cleaner-burning LNG every day, increasing the total capacity by 50%.
By adding a third production train, the supply is likely to be able to keep up with the increasing demand for bulk LNG from customers who want to decarbonize everything, from city buses to large container ships.
Rise in LNG Production to Meet Demand
As an important Clean Energy customer, Pasha Hawaii is currently operating three LNG-powered container ships out of the ports of Long Beach, Oakland and Honolulu. When Pasha Hawaii's first LNG-powered ship was put into service in August 2022, the MV George II, MV George III and MV Janet Marie carried 526,486 gallons of LNG fuel (in unison). By April 2024, that amount increased to 2,115,726 gallons.
In addition to significantly and immediately improving the air quality near the ports, which frequently have some of the worst air pollution in the nation, fueling with LNG allows all three of the Pasha Hawaii ships to operate above the International Maritime Organization's 2030 requirements for ocean vessels with zero sulfur emissions. In comparison to ships using conventional fuels, Pasha's LNG ships achieved a 90% reduction in nitrogen oxide and a 25% reduction in carbon dioxide emissions.
The addition of more LNG production at its Boron facility should provide an opportunity to serve other customers and assist them in decarbonizing their operations.
Demand for LNG is on the Rise
The Institute for Energy Economics and Financial Analysis has released a report indicating that the worldwide LNG market is about to experience an unparalleled surge of new liquefaction projects starting late 2024.
This surge is expected to be the quickest expansion in the history of the global LNG sector, marking a 40% rise over a span of five years. The sector is poised to increase its liquefaction capacity by nearly five times from 2025 to 2028, compared to the preceding four-year span.
Along with CLNE, other companies like Sempra Energy (SRE - Free Report) , TotalEnergies SE (TTE - Free Report) and Exxon Mobil Corporation (XOM - Free Report) are also set to benefit from the growing LNG market.
Sempra Energy is well-positioned with strategically located opportunities in North America, with the United States being the leading exporter of LNG in 2023. Its Port Arthur (PA) LNG Phase 1 project’s first and second trains are expected to commence commercial operations in 2027 and 2028, respectively. The company’s other LNG projects that are currently under development are the Cameron LNG Phase 2 project, ECA LNG Phase 2 project, PA LNG Phase 2 project and Vista Pacifico LNG project.
SRE’s long-term (three- to five-year) earnings growth rate is 6%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year increase of 4.1%.
TTE benefits from an integrated position across the LNG value chain, including production, transportation, access to more than 20 metric tons per year (Mt/y) of regasification capacity in Europe, trading and LNG bunkering. Its global LNG portfolio was 44 Mt/y in 2023 owing to its interests in liquefaction plants in all geographies. The company continues to expand its LNG operation through acquisitions, partnerships and agreements.
TTE’s long-term earnings growth rate is 4.38%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year decrease of 3.4%.
XOM aims to double its capacity to 40 million tons per annum (Mtpa) by 2030, up from the current production of nearly 30 Mtpa. This growth trajectory marks a significant step from the company's 2020 announcement, reflecting its strategic shift toward self-reliance in LNG trading.
XOM’s long-term earnings growth rate is 3%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year increase of 0.5%.
Price Performance
In the past three months, shares of the company have risen 13.6% compared with the industry’s 3.3% growth.
Image: Bigstock
Clean Energy Fuels (CLNE) Builds Third LNG Train at Boron Plant
Clean Energy Fuels (CLNE - Free Report) announced that it has completed the construction of a third production train at its liquefied natural gas (LNG) plant in Boron, CA. As the largest plant of its kind in Southwest United States, the Boron plant now has the capacity to produce up to 270,000 gallons of cleaner-burning LNG every day, increasing the total capacity by 50%.
By adding a third production train, the supply is likely to be able to keep up with the increasing demand for bulk LNG from customers who want to decarbonize everything, from city buses to large container ships.
Rise in LNG Production to Meet Demand
As an important Clean Energy customer, Pasha Hawaii is currently operating three LNG-powered container ships out of the ports of Long Beach, Oakland and Honolulu. When Pasha Hawaii's first LNG-powered ship was put into service in August 2022, the MV George II, MV George III and MV Janet Marie carried 526,486 gallons of LNG fuel (in unison). By April 2024, that amount increased to 2,115,726 gallons.
In addition to significantly and immediately improving the air quality near the ports, which frequently have some of the worst air pollution in the nation, fueling with LNG allows all three of the Pasha Hawaii ships to operate above the International Maritime Organization's 2030 requirements for ocean vessels with zero sulfur emissions. In comparison to ships using conventional fuels, Pasha's LNG ships achieved a 90% reduction in nitrogen oxide and a 25% reduction in carbon dioxide emissions.
The addition of more LNG production at its Boron facility should provide an opportunity to serve other customers and assist them in decarbonizing their operations.
Demand for LNG is on the Rise
The Institute for Energy Economics and Financial Analysis has released a report indicating that the worldwide LNG market is about to experience an unparalleled surge of new liquefaction projects starting late 2024.
This surge is expected to be the quickest expansion in the history of the global LNG sector, marking a 40% rise over a span of five years. The sector is poised to increase its liquefaction capacity by nearly five times from 2025 to 2028, compared to the preceding four-year span.
Along with CLNE, other companies like Sempra Energy (SRE - Free Report) , TotalEnergies SE (TTE - Free Report) and Exxon Mobil Corporation (XOM - Free Report) are also set to benefit from the growing LNG market.
Sempra Energy is well-positioned with strategically located opportunities in North America, with the United States being the leading exporter of LNG in 2023. Its Port Arthur (PA) LNG Phase 1 project’s first and second trains are expected to commence commercial operations in 2027 and 2028, respectively. The company’s other LNG projects that are currently under development are the Cameron LNG Phase 2 project, ECA LNG Phase 2 project, PA LNG Phase 2 project and Vista Pacifico LNG project.
SRE’s long-term (three- to five-year) earnings growth rate is 6%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year increase of 4.1%.
TTE benefits from an integrated position across the LNG value chain, including production, transportation, access to more than 20 metric tons per year (Mt/y) of regasification capacity in Europe, trading and LNG bunkering. Its global LNG portfolio was 44 Mt/y in 2023 owing to its interests in liquefaction plants in all geographies. The company continues to expand its LNG operation through acquisitions, partnerships and agreements.
TTE’s long-term earnings growth rate is 4.38%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year decrease of 3.4%.
XOM aims to double its capacity to 40 million tons per annum (Mtpa) by 2030, up from the current production of nearly 30 Mtpa. This growth trajectory marks a significant step from the company's 2020 announcement, reflecting its strategic shift toward self-reliance in LNG trading.
XOM’s long-term earnings growth rate is 3%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year increase of 0.5%.
Price Performance
In the past three months, shares of the company have risen 13.6% compared with the industry’s 3.3% growth.
Image Source: Zacks Investment Research
Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.