logo
Share SHARE
FONT-SIZE Plus   Neg

Cheniere Energy Gets Federal Approval For LNG Export Project

Cheniere Energy Partners, L.P. (LNG) said late Monday that it has received approval from the Federal Energy Regulatory Commission or FERC to construct and operate facilities to liquefy domestic natural gas for export to international markets.

This is the FERC's first approval of a project that would export liquified natural gas or LNG from production resources within the U.S. Shares of Cheniere gained more than 7 percent in after-hours trading following the news.

Chenerie Energy said that the regulator's approval was received for export of domestically produced natural gas at the Sabine Pass LNG terminal located in Cameron Parish, Louisiana.

The regulatory approval authorizes the development of up to four modular LNG trains, each with a nominal capacity of about 4.5 million tonnes per annum or mtpa.

The approval requires Chenerie to complete construction and have the proposed facilities available for service within five years of the date of the order. The project is estimated to cost $10 billion.

Cheniere Partners owns 100 percent of the Sabine Pass LNG receiving terminal. The Sabine Pass terminal has regasification and send-out capacity of 4.0 billion cubic feet per day or Bcf/d, and storage capacity of 16.9 billion cubic feet equivalent or Bcfe.

Cheniere Energy's subsidiaries, Sabine Pass LNG and Sabine Pass Liquefaction, plan to construct and operate liquefaction and related facilities that would enable them to liquefy and export up to 2.2 billion cubic feet, or 16 million tons per annum, of domestically produced natural gas.

The subsidiary companies had earlier received approval from the U.S. Department of Energy for their plans to export LNG for a 20-year period.

The liquefaction project will be built in two stages, each consisting of two LNG process trains with a liquefaction capacity of an estimated 4.0 mtpa. Each LNG train will commence operations about six to nine months after the previous train.

Sabine Liquefaction has entered into four long-term customer sale and purchase agreements for 16.0 mtpa of LNG volumes, representing about 89 percent of the nominal LNG volumes. The customers include BG Gulf Coast LNG, LLC for 5.5 mtpa, and Gas Natural Fenosa of Spain, KOGAS of Korea, and GAIL (India) Ltd. for 3.5 mtpa each.

Earlier in the day, Cheniere said it has engaged eight financial institutions to act as joint lead arrangers to assist in the structuring and arranging of up to $4 billion of debt facilities.

The eight financial institutions are the Bank of Tokyo-Mitsubishi UFJ, Ltd., Credit Agricole Corporate and Investment Bank, Credit Suisse Securities (USA) LLC, HSBC, J.P. Morgan Securities LLC, Morgan Stanley, RBC Capital Markets, and SG Americas Securities, LLC.

Cheniere will use the proceeds to pay for costs of development and construction of the liquefaction project at the Sabine Pass LNG terminal, to fund the acquisition of the Creole Trail Pipeline from Cheniere Energy, Inc. and for general business purposes.

LNG closed Monday's trading at $16.99, up $0.13 or 0.77 percent on a volume of 10.70 million shares. In after-hours, the stock further gained $1.26 or 7.42 percent to $18.25.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Dairy giant Saputo Inc. is voluntarily recalling certain Gouda cheese products in the U.S. due to potential listeria contamination. Saputo said one of its suppliers, Deutsch Kase Haus, LLC of Middlebury, Indiana, notified the company that some specialty Gouda cheese products that it supplied to Saputo's Green Bay, Wisconsin facility may have been contaminated with Listeria monocytogenes. Amazon is exploring the possibility of using parachutes to drop drone-delivered packages. The e-commerce giant has been granted a patent titled, "Maneuvering a package following in-flight release from an unmanned aerial vehicle". U.S. food maker Kraft Heinz Co. (KHC) Friday confirmed that it has made a comprehensive proposal to Anglo-Dutch consumer goods company Unilever Plc or Unilever NV. The cash and stock offer values $143 billion. Further, Kraft Heinz noted that Unilever has declined the proposal, however it go ahead...
comments powered by Disqus
Follow RTT