Cheniere Energy Seeks 49 mtpa LNG Expansion, Morgan Stanley Cuts Target
Cheniere Energy applied to FERC on February 5 to expand its Corpus Christi facility from 25 mtpa to 49 mtpa, requiring 3.3 Bcf/d of feed gas. The company seeks approval by May 2027, while Morgan Stanley downgraded its rating to Equal Weight and cut its target to $236.
1. FERC Application for Stage 4 Expansion
On February 5, Cheniere Energy submitted a formal application to the Federal Energy Regulatory Commission to add a Stage 4 liquefaction unit at its Corpus Christi site in Texas, marking a new project phase beyond the ongoing Stage 3 expansion.
2. Capacity Growth Details
The existing Stage 3 project will boost total liquefaction capacity to 25 mtpa; Stage 4, if approved, would increase combined capacity to 49 mtpa, nearly doubling output at the Gulf Coast facility.
3. Gas Feed Requirements and Timeline
Stage 4 is projected to require 3.3 billion cubic feet per day of natural gas feedstock, with Cheniere targeting federal approval by May 2027 to begin construction and subsequent commissioning.
4. Morgan Stanley Downgrade
On February 24, Morgan Stanley downgraded the stock from Overweight to Equal Weight and lowered its price target from $258 to $236, citing expectations of a global LNG supply glut and shares trading near fair value.