USA: Cheniere Makes FID for Two Liquefaction Trains

Cheniere Energy Partners, owner of the Sabine Pass LNG terminal, announced that its Board of Directors has made a positive final investment decision to construct the first two liquefaction trains of the Sabine Pass liquefaction project.

FID is subject to the closing of the debt financing, funding of the initial equity investment by Blackstone Energy Partners L.P., Blackstone Capital Partners VI L.P., and certain affiliates, and funding of the remaining equity investment by Cheniere Energy, Inc.

Cheniere Partners expects to fund the Liquefaction Project costs with approximately $2.0 billion of equity and approximately $3.6 billion of debt. Blackstone has agreed to purchase $1.5 billion of Cheniere Partners’ Class B units and CEI has agreed to purchase $500 million of Class B Units. In June 2012 CEI purchased approximately $167 million of the total $500 million of Class B Units. Sabine Pass Liquefaction is in the process of closing a bank credit facility of approximately $3.6 billion, which will be held by a syndicate of eleven joint lead arranger banks and additional banks and financial institutions.

Cheniere Partners will issue a full notice to proceed to Bechtel Oil, Gas and Chemicals, Inc. upon the receipt of initial funding by Blackstone and the remaining equity investment from CEI. In June 2012 Cheniere Partners issued a limited notice to proceed for the start of site preparation and to continue with detailed engineering and limited procurement activities currently underway. The first liquefaction train is expected to start operations as early as 2015, with the second liquefaction train expected to commence operations six to nine months thereafter.

[mappress]
LNG World News Staff, July 31, 2012