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Cheniere Energy (LNG - Free Report) and Whistler Pipeline-developed ADCC pipeline, which connects the latter’s Agua Dulce Header to the former’s Corpus Christi LNG facility, has begun operations. The pipeline has been developed for the transportation of liquefied natural gas.
Whistler Pipeline owns a 70% stake in the ADCC pipeline, while the remaining 30% is held by a wholly-owned subsidiary of Cheniere. Whistler Pipeline is a joint venture involving WhiteWater, MPLX and Enbridge, holding a 50.6%, 30.4% and 19% stake, respectively.
The ADCC pipeline, an intrastate pipeline spanning 40 miles, began commercial operations on Jul 1, 2024. Per a statement from WhiteWater, the pipeline has the capacity to transport up to 1.7 billion cubic feet per day (Bcf/d) of liquefied natural gas. The transportation capacity can be further expanded to 2.5 Bcf/d.
Cheniere has stated that the pipeline would provide direct access to natural gas volumes produced in the Permian and Eagle Ford basins, alongside natural gas from the Gulf Coast. The ADCC pipeline is expected to enhance the LNG infrastructure in Texas and create an extra demand point for natural gas coming in from the Permian basin. The additional demand point is expected to reduce flared volumes in the Permian Basin and also aid the export of liquefied natural gas from the United States to global markets.
Cheniere’s Corpus Christi liquefaction facility involves three trains, each of which has the capacity to produce nearly 5 million tons per annum (mtpa) of liquid natural gas. A final investment decision (FID) was taken on the Corpus Christi Stage 3 project in June 2022.
Corpus Christi Stage 3 is aimed at increasing the total nominal capacity of the facility to more than 25 mtpa. Following the FID, Cheniere also signed purchase agreements with PetroChina and PTT for delivering the liquefied natural gas. The deal with PetroChina involved up to 1.8 mtpa of liquefied natural gas, while PTT agreed to purchase 1 mtpa. The deliveries are expected to begin in 2026.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Hess is a leading upstream energy company with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. Hess is currently in the process of being acquired by energy supermajor Chevron in an all-stock deal that will result in the creation of an energy behemoth with a massive portfolio of producing assets.
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Cheniere's (LNG) ADCC Pipeline Begins Commercial Operations
Cheniere Energy (LNG - Free Report) and Whistler Pipeline-developed ADCC pipeline, which connects the latter’s Agua Dulce Header to the former’s Corpus Christi LNG facility, has begun operations. The pipeline has been developed for the transportation of liquefied natural gas.
Whistler Pipeline owns a 70% stake in the ADCC pipeline, while the remaining 30% is held by a wholly-owned subsidiary of Cheniere. Whistler Pipeline is a joint venture involving WhiteWater, MPLX and Enbridge, holding a 50.6%, 30.4% and 19% stake, respectively.
The ADCC pipeline, an intrastate pipeline spanning 40 miles, began commercial operations on Jul 1, 2024. Per a statement from WhiteWater, the pipeline has the capacity to transport up to 1.7 billion cubic feet per day (Bcf/d) of liquefied natural gas. The transportation capacity can be further expanded to 2.5 Bcf/d.
Cheniere has stated that the pipeline would provide direct access to natural gas volumes produced in the Permian and Eagle Ford basins, alongside natural gas from the Gulf Coast. The ADCC pipeline is expected to enhance the LNG infrastructure in Texas and create an extra demand point for natural gas coming in from the Permian basin. The additional demand point is expected to reduce flared volumes in the Permian Basin and also aid the export of liquefied natural gas from the United States to global markets.
Cheniere’s Corpus Christi liquefaction facility involves three trains, each of which has the capacity to produce nearly 5 million tons per annum (mtpa) of liquid natural gas. A final investment decision (FID) was taken on the Corpus Christi Stage 3 project in June 2022.
Corpus Christi Stage 3 is aimed at increasing the total nominal capacity of the facility to more than 25 mtpa. Following the FID, Cheniere also signed purchase agreements with PetroChina and PTT for delivering the liquefied natural gas. The deal with PetroChina involved up to 1.8 mtpa of liquefied natural gas, while PTT agreed to purchase 1 mtpa. The deliveries are expected to begin in 2026.
Zacks Rank and Other Key Picks
Currently, LNG carries a Zacks Rank #3(Hold).
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , Sunoco LP (SUN - Free Report) and Hess Corporation (HES - Free Report) . SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, while Hess Corporation carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Hess is a leading upstream energy company with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. Hess is currently in the process of being acquired by energy supermajor Chevron in an all-stock deal that will result in the creation of an energy behemoth with a massive portfolio of producing assets.