S&P Global Ratings upgrades Cheniere Energy Partners to BBB+
Investing.com -- S&P Global Ratings has upgraded Cheniere Energy Partners to BBB+ from BBB, reflecting the company’s strong operational performance and its core relationship with parent company Cheniere Energy Inc.
CQP is expected to demonstrate robust financial metrics in 2025, with S&P forecasting adjusted EBITDA of $3.6 billion-$3.7 billion for 2025 and 2026, maintaining leverage at approximately 4x.
The company operates the Sabine Pass LNG terminal in Louisiana, which features six fully functional liquefaction trains with a total production capacity of about 30 million tons annually (mtpa) of LNG. Since beginning operations in 2016, the facility has produced and exported more than 3,120 LNG cargoes.
Most of CQP’s revenue comes from long-term contracts, providing stable income and reducing exposure to spot market fluctuations.
The company is developing an expansion project that could increase the facility’s capacity by 67%, adding approximately 20 mtpa of LNG production. S&P expects CQP to reach a final investment decision on this project as early as 2026.
In 2024, CQP’s Sabine Pass LNG filed an application with the Federal Energy Regulatory Commission for authorization to proceed with the expansion. The company has also received Department of Energy approval to export LNG to free-trade agreement countries.
CQP has begun commercializing the expansion, with up to 7 mtpa of signed long-term take-or-pay fixed fee agreements expected to support the project. The most recent supply and purchase agreement was signed by Cheniere Marketing, a subsidiary of Cheniere Energy Inc., in support of GALP Trading S.A.
The rating upgrade reflects CQP’s core relationship with Cheniere Energy Inc., which holds approximately 50.6% ownership (48.6% limited partnership interest and 2% general partnership interest). The remaining ownership is divided among Blackstone Group Inc., Brookfield Asset Management Inc., and public shareholders.
S&P considers CQP to be core to Cheniere Energy Inc.’s operations, resulting in a one-notch uplift to CQP’s stand-alone credit profile of ’bbb’. The stable outlook on CQP mirrors the stable outlook on its parent company.
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