The Energy Executive Leading the Charge
Grindal is well poised to oversee pipeline infrastructure improvement since graduating from the University of Texas at Austin with a degree in mechanical engineering. Grindal began his storied career working at Tenneco/El Paso as a pipeline engineer before moving into marketing and eventually trading. Before coming to Cheniere, Grindal would spend time at Louis Dreyfus, a leading global merchant and processor of agricultural goods, and Deutsche Bank. In the trading realm, Grindal would be put in charge of several ventures that would alter his career trajectory. Notably, Grindal played a pivotal role in launching a gas and electricity trading group for Deutsche.
When Cheniere received approval to transition from regasification to liquefaction, they needed a supply platform built. That’s when they brought Grindal on board for the job. Coming to Cheniere in 2013, Grindal would start with the company as Vice President of Gas Supply. That initial role was all about building the essential groundwork for ensuring the company’s LNG deliveries to Cheniere’s terminals were as solid as a rock. Not only that but he was also put in charge of forging critical connections with the United States’ producer community. And, lest he be bored, he also had the monumental task of putting all the systems, processes, and people power in place that would catapult Cheniere to the top spot as the United States’ go-to LNG exporter.
In his unassuming way, the global energy executive pointed out he’s worked with many great teammates and mentors along the way who have helped pave a successful career. But through it all, Grindal is quick to give a lot of the credit for his career’s success with his wife, Dana, and three children, who have “stood by him through thick and thin,” he says. Grindal even recounts working offshore when Dana suddenly went into labor with their second child. Placing family first, Grindal chartered a helicopter to get him there in time so he wouldn’t miss the birth.
The changing global energy landscape in recent years means Cheniere must continue to adapt. When asked how they’ve transformed, Grindal was resolute in his response. “Our core principle has always been to honor our commitment to customers,” he explains. Those customers include China and others around the globe, including powerful European allies. This dedication remains unwavering, even considering the events leading up to 2022, before the conflict in Ukraine.
Grindal explains that their fundamental business model has remained constant: Cheniere specializes in selling long-term contracts that underpin the development and financing of critical energy facilities. Therefore, adaptability lies in the simple ability to persist in selling energy well into the future.
The Inherent Beauty of Destination-Free Cargo
In 2022, more than 70% of everything Cheniere produced found its way to Europe, emphasizing the significance of its exports to the continent during a time of incredible upheaval. What sets them apart is that a substantial portion, around 90% of their cargo, was sold to third parties, most of whom are long-term customers, showcasing that U.S. LNG profoundly impacts the global LNG landscape. The unique approach offers destination-free cargo, affording both Cheniere and the customers the freedom to transport them to any corner of the globe. This market transition marks a significant departure from the rigidity observed in the pre-Cheniere LNG market. Back then, exporters lacked the destination flexibility enjoyed today.
Note that Cheniere pioneered destination-free capabil- ity, contributing to the growth and evolution of the U.S. LNG export market, and from which their customers supremely benefit. Leveraging this flexibility empowers Cheniere to meet market demands and strengthens the United States’ geopolitical position.
Keeping Up with Global Demands for Cleaner Fuel
In true gentlemen’s fashion, Grindal chose not to draw comparisons between Cheniere and other LNG players. Instead, he focused on Cheniere and its unique journey. Bear in mind that Cheniere’s current capacity of 45 million tons, will be bolstered with ongoing expansion efforts under construction that will quickly take them up to 55 million tons in the coming years. Additionally, they’re addressing bottlenecks, expecting to free up an extra 3-5 million tons, bringing them to a total of 60 million tons in the near future. Their expansion plans, which include adding up to approximately 20 million tons, aim to ultimately place them in the neighborhood of 80 million tons.
Cheniere adheres to stringent investment rules to accomplish aggressive goals and a structured checklist guiding their decisions. They commit to selling capacity in long-term contracts, aligning with their financial metrics and only proceeding with construction when they meet all criteria. Cheniere’s goal is to secure contracts that tick all the boxes on its investment checklist, ensuring that they expand their capacity in tandem with the demand from willing customers, thereby delivering the best outcomes while prudently allocating capital. This approach underscores a commitment to treating shareholders across the board fairly.
Looking back to 2015, the U.S. witnessed a significant grid shift, which was not initially geared toward gas exports. Fast forward to today, with several projects in play, and they’re seeing their capacity grow from 13 billion cubic feet to approximately 20 billion cubic feet.
Note that infrastructure plays a pivotal role here. Washington desperately needs to hear the critical message that we must continue bolstering American infrastructure, not just for gas but also for power, natural gas liquids, and crude oil. These resources are essential for our global allies and crucial in the context of evolving electric vehicle technology and geopolitical considerations. “LNG will be needed for the foreseeable future and longer than that. We can’t deploy other sources fast enough and efficiently enough to meet the needs of the people,” says Grindal.
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