The state-owned Abu Dhabi Investment Authority (ADIA) has acquired a 5.05% share in U.S. liquefied natural gas (LNG) exporter Cheniere Energy Inc., according to a Wednesday filing with the U.S. Securities and Exchange Commission.
The sovereign wealth fund owns about 12.7 million shares of Houston-based Cheniere that are valued at about $648 million. Cheniere’s share price gained more than 4% on Wednesday to close at $50.50.
ADIA is now Cheniere’s fourth-largest shareholder, Bloomberg reported. ADIA is the world’s third-largest sovereign wealth fund with assets of $597.6 billion, according to the Sovereign Wealth Fund Institute, a non-profit group.
Other Middle Eastern state-owned entities also have expressed interest in owning equity in U.S. LNG export facilities. Saudi Arabia Oil Co., aka Aramco, in January signed an Interim Participation Project Agreement (IPPA) with Sempra Energy establishing the mechanisms for the two companies to make a final investment decision on the proposed Port Arthur LNG export project in Texas.
The IPPA followed a heads of agreement the companies signed in May 2019 for Saudi Aramco to buy 5 million metric tons/year (mmty) of LNG and a 25% equity investment in the not-yet-sanctioned project.
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