Boston, MA 04/08/2014 (wallstreetpr) – Cheniere Energy Partners LP (NYSEMKT:CQP) is a $6.35 billion master limited partnership organization. The partnership is owned 48 percent by its parent company Cheniere Energy Inc (NYSEMKT:LNG).
The partnership owns and operates onshore liquefied petroleum gas (LPG) receiving terminals located along the Gulf Coast of U.S. By law, master limited companies return all of their profits to investors. As such, with proper selection, master limited partnerships can make investors rich in times of booming business like now.
The LPG sectors is experiencing exciting atmosphere following recovery of prices and the anticipated demand for the commodity in the international markets. Demand for LPG is growing rapidly in Europe and Asian markets and the demand is expected to increase in more markets around the world. In this situation, the cheap, quality and reliable U.S. source is likely to benefit LPG companies which are ready to go for the opportunities.
Few players
There are several reasons why Cheniere Energy Partners LP (NYSEMKT:CQP) is poised for big gains in the export boom. Owning LPG export facilities is usually an expensive venture and the sector only has a few players. Moreover, the regulatory approval for new facilities is always lengthy and this means that companies which already have their facilities ready like CQP have great opportunity to gain immensely from the export boom.
Ready to enter long-term profitability
Cheniere Energy Partners LP (NYSEMKT:CQP) is constructing export facility at Cameron Parish. The company has set aside to invest $7.8 billion in the project. The facility will initially have four trains and later six. Already the four trains have secured long-term contracts with term life of 20 years. Given the export capacity each of the four trains, the company will be able to generated total fixed revenue of $2.9 billion. And with the addition of two more trains as expected by 2019, fixed annual revenue is expected to hit $3.9 billion, which will be more than 1,340 percent increased from the current revenue levels. The company generated $268 million revenue in 2013.
Be prepared
While there is no doubt that Cheniere Energy Partners LP (NYSEMKT:CQP) provides great profit opportunity for investors. Something to note is that benefits will not be able to come overnight. Thus, investors should be patient.
