Two Asia-focused investors -- Temasek and RRJ Capital -- have agreed to put $468 million into Cheniere Energy Inc., the liquefied natural gas (LNG) developer said Monday, adding that it would use the proceeds to support development of liquefaction and export capability at the Sabine Pass LNG facility in Louisiana (see Daily GPI, April 18).
The proceeds from Temasek and RRJ Capital, combined with cash on hand, will be used to buy $500 million of the $2 billion of equity securities expected to be issued by Cheniere Energy Partners LP to finance Sabine Pass LNG, Cheniere said.
The investment by Temasek and RRJ "would allow us to increase our equity holdings in Cheniere Partners, which we believe is an attractive, long-term opportunity that better aligns us with the Sabine Project and its investors," said Cheniere CEO Charif Souki. "Additionally, Temasek and RRJ Capital would enhance the further development of our LNG business through their expertise and experience in investments, marketing and trading in Asian markets."
Temasek, RRJ Capital and Cheniere also are in discussions on a partnership focused on developing LNG sales, marketing and trading relationships and opportunities in Asian markets, Cheniere said. The partnership would market LNG from the proposed Sabine Pass facility as well as the company's proposed Corpus Christi, TX, LNG liquefaction facilities (see Daily GPI, Dec. 19, 2011).
"This investment helps to expand our longer-term interest in the energy and resources sector," said Temasek's Greg Lanham, managing director for investments. "We look forward to working with both Cheniere and RRJ Capital and others to tap into opportunities in Asia which are driven by the energy demand of growing middle income populations and continued urbanization in the decades ahead."
Incorporated in 1974, Temasek is an investment company headquartered in Singapore and focused on financial services; transportation and industrials; telecommunications, media and technology; life sciences, consumer and real estate; and energy and natural resources. RRJ Capital is a US$2.3 billion Asia-focused private equity firm targeting growth sectors such as energy, natural resources, financial institutions, consumer and health care.
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