Cheniere Energy Partners, L.P. Q4 FY2025 earnings call

It takes 18 months to two years to obtain a permit, and pipeline plans need to be filed with FERC and made public, followed by 3 to 4 years of construction. The U.S. natural gas production has increased from around 67 - 68 BCF a day in February 2016 to over 110 BCF a day currently. We work to get economies of scale by going back to optimized plans for projects like SPL and CCL expansions. Filings for CCL Stage 3 and mid - scale 8 and 9 expansions are about de - bottlenecking and accommodating peak production at certain sites. The CPC contract starts mid - 2026.

Asia is expected to grow from a roughly 270 million ton market, which has been stagnant in recent years due to high prices, to well over 400 million tons in the next decade. Gas - to - power demand in the U.S. is at new highs, partly driven by growing data center electricity needs.

Committed to growing the dividend by approximately 10% per year throughout the decade. There is potential upside to volume guidance from Corpus Stage 3 trains coming online earlier than contemplated. Plans are in place for FIDs of Train 7 and Train 4 with cost - effective strategies to achieve economies of scale.

Concerns that rising LNG exports could worsen domestic affordability pressures. Uncertainties regarding the permitting and commercialization of incremental capacity in China.

Q: What is your view on rising LNG exports exacerbating domestic affordability pressures and its impact on Chinese ability to permit and commercialize incremental capacity, as well as LNG's importance as a strategic trade and geopolitical lever?

A: It takes 18 months to two years to get a permit, and pipeline plans take 3 to 4 years for construction. We purchase firm transportation. Gas - to - power entities don't like firm transportation. We explain how the markets work to legislators and regulators.

Q: Talk about the drivers of significant EPC CapEx escalation in LNG greenfield projects in 2025 and its impact on brownfield projects like yours?

A: There is some escalation, and we are working through it with partners. Lead time is more of a concern than inflation. We have gone back to an optimized plan to obtain economies of scale.

Q: Timing and use case for the CCL Stage 3 and mid - scale 8 and 9 expansions?

A: Those filings are about de - bottlenecking and accommodating peak production at certain times of the year at the site. It is part of the overall plan to reach 75 million tons.

Q: When is the CPC contract expected to kick in during 2026?

A: It starts mid - year.

Q: How does the ramp - up of Corpus Stage 3 affect the volume guidance upside?

A: Still early in the year, but if all three trains were a month early, there could be comfortably over $50 million of incremental EBITDA at current margins. Things are progressing well.

Q: Do SBA opportunities support higher - cost trains beyond initial brownfield opportunities?

A: If we needed to get to 20 million tons of additional contracted volumes, we couldn't maintain the $2.50 - $3 standard currently. Our performance and reliability help capture premium contracts.

Q: Thoughts on dividend growth and its relation to buybacks?

A: Committed to growing the dividend by 10% per year through the decade. 50% of the payout ratio is for buybacks, which enhances the company's financial flexibility.