Cheniere Energy Shares Jumped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Cheniere Energy (ASE: LNG) rose 12% in early trading after the company announced a 20-year liquid natural gas, or LNG, agreement with Spain's Gas Natural Fenosa.

So what: Gas Natural has committed to buy 3.5 million tons of LNG per year. Sister company Cheniere Partners (NYS: CQB) , through a subsidiary, is in the process of developing a terminal capable of producing 9 million tons of LNG annually. Gas Natural is expected to begin taking deliveries in 2016.

Now what: The agreement follows a similar deal with BP Group, signed earlier this month. Will these arrangements supply enough capital to keep Cheniere from being crushed under the weight of billions in debt? I'm asking you. Would you buy shares of Cheniere Energy at current prices? Please weigh in using the comments box below.

Interested in more information about Cheniere Energy? Add it to yourwatchlist.

At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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