Cheniere’s LNG Export Plans More a Step Closer

Cheniere Energy Partners has taken anther step in its quest to supply liquefied natural gas from US shale gas to European and Asian markets

Blackstone has agreed to provide Cheniere $2bn of financing to refit its existing Sabine Pass gas import terminal in Louisiana to be able condense and ship over 800 billion cubic feet of gas per year of domestically produced supply.  

"Obtaining this financing will be a significant milestone for the advancement towards construction of the first two liquefaction trains.  Blackstone is one of the world's largest private equity investors, with significant experience in the energy sector and a history of successful development of large-scale energy projects.  We look forward to a successful working relationship with Blackstone as a value-added partner in the development of our Sabine Pass liquefaction project," said Charif Souki, Chairman and CEO.  "We expect to obtain the remaining financing needed to fund the first two trains by the end of the first quarter and to commence construction in the first half of 2012."

Sabine Pass opened in 2008 as a terminal to take in natural gas shipments from overseas. Fearing US gas shortages, Cheniere and other companies built gas-import terminals during the past decade. However, a surge in natural gas production from shale gas fields changed US market dynamics, reducing the need for imports.

The project would be the first bi-directional LNG processing facility capable of importing and exporting LNG.

Cheniere has already entered into long-term supply agreement with India's GAIL, KOGAS, BG Group and Natural Gas Fenosa.