Cheniere Energy Partners LP (CEP) has taken a step toward a final investment decision on the Sabine Pass LNG export project by entering an exclusive agreement for financing worth $2 billion.
The agreement, with Blackstone Energy Partners LP, Blackstone Capital Partners VI LP, and affiliates, is to finalize and execute definitive agreements to purchase new senior subordinated pain-in-kind units of CEP.
CEP’s pending decision covers construction of the first two of four modular liquefaction trains at its Sabine Pass terminal in Cameron Parish, La., which now has 4 bcfd of regasification and sendout capacity (OGJ Online, Dec. 20, 2011).
The company estimates cost of the first two trains, with nominal capacities of 4.5 million tonnes/year of LNG each, at $4.5-5 billion before financing costs.
It would use proceeds from the new financing for the equity portion of costs of developing, building, and placing into service the liquefaction equipment; closing the purchase of the 94-mile Creole Trail pipeline from Cheneire Energy Inc.; and other partnership business.
Bob Tippee | Editor
Bob Tippee has been chief editor of Oil & Gas Journal since January 1999 and a member of the Journal staff since October 1977. Before joining the magazine, he worked as a reporter at the Tulsa World and served for four years as an officer in the US Air Force. A native of St. Louis, he holds a degree in journalism from the University of Tulsa.