Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Cheniere Energy Gets Federal Approval For LNG Export Project

RELATED NEWS
Trade LNG now with 
4/16/2012 11:34 PM ET

Cheniere Energy Partners, L.P. (LNG: Quote) 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.

Register
To receive FREE breaking news email alerts for Cheniere Energy Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
New home sales in the U.S. unexpectedly showed a substantial decrease in the month of March, according to a report released by the Commerce Department on Wednesday, with sales falling to their lowest level in eight months. The report said new home sales plunged 14.5 percent to an annual rate of 384,000 in March from the revised February rate of 449,000. Euro area's government deficit shrunk last year to match the EU target, while public debt rose and remained above the official ceiling, figures from the Eurostat showed Wednesday. The shrunken government deficits suggest that euro area might be leaving behind the worst troubles of the financial crisis,... Following the strong upward move seen over the past few sessions, stocks may give back some ground in early trading on Wednesday. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 6 points.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.