Shares of Cheniere Energy (AMEX: LNG) are exploding higher today, currently up by 15.32%, trading at $4.14. The company announced earlier that its subsidiary, Sabine Pass Liquefaction, LLC has signed a memorandum of understanding with ENN Energy Trading Co., Ltd., under which ENN Energy Trading intends to contract 1.5 million tonnes per annum of bi-directional LNG processing capacity at the Sabine Pass LNG terminal located in Cameron Parish, Louisiana.
Under the memorandum of understanding, ENN Energy Trading and Sabine have agreed to proceed with negotiations of definitive agreements for ENN Energy Trading to contract capacity for a primary term of 20 years with mutually agreed extension terms, subject to certain conditions precedent, including but not limited to Sabine's receipt of regulatory approvals and making a final investment decision to construct the liquefaction facilities, and ENN Energy Trading reaching a final investment decision to construct an LNG receiving terminal.
Shares have been running higher over the past two months and are currently trading above the 50-day and 200-day moving averages.
Cheniere Energy, Inc. is an energy company primarily engaged in liquefied natural gas LNG-related businesses. The company owns and operates the Sabine Pass LNG receiving terminal in Louisiana through its 90.6% ownership interest in and management agreements with Cheniere Energy Partners, L.P. It also owns and operates the Creole Trail Pipeline, which interconnects the Sabine Pass LNG receiving terminal with downstream markets.