A unit of Cheniere Energy Partners LP and Morgan Stanley have struck a potential deal for Morgan Stanley to acquire import and liquefaction capacity at the Sabine Pass LNG terminal in Cameron Parish, LA, Cheniere said Monday.

Cheniere subsidiary Sabine Pass Liquefaction LLC signed a nonbinding memorandum of understanding with Morgan Stanley Capital Group. Inc. for the import capacity and about 20% of a proposed 7 million metric tons per annum (mtpa) of natural gas liquefaction capacity at the terminal.

Cheniere is pursuing the development of natural gas liquefaction at the import terminal, which would allow it to export gas produced in the United States as liquefied natural gas (LNG) (see Daily GPI, Sept. 13). If the project goes forward, Sabine Pass LNG would be the only permanent LNG export facility in the Lower 48.

Morgan Stanley would have the ability to export or import 1.7 mtpa of LNG from the proposed facility. The arrangement is subject to negotiation and execution of definitive agreements and other conditions, including regulatory approvals for the facility. The MOU does not represent a final and binding agreement, Cheniere said.

"This is a significant development for our liquefaction project at Sabine Pass," said Cheniere Partners CEO Charif Souki. "I am pleased with all of the progress we have made to date and look forward to continuing discussions with Morgan Stanley and with additional customers in order to advance with our project."

Cheniere Partners owns 100% of the Sabine Pass terminal, which has sendout capacity of 4 Bcf/d and storage capacity of 16.9 Bcfe.

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