Cheniere Energy Inc. announced that its wholly owned limited partnership, Sabine Pass LNG L.P. has signed agreements with HSBC Securities (USA) Inc. and SG Corporate & Investment Banking, an arm of Societe Generale, to arrange the $741 million debt component of the project financing for the construction of its liquefied natural gas (LNG) receiving terminal in Cameron Parish, LA (see Daily GPI, Sept. 7).

Sabine Pass LNG received its Draft Environmental Impact Statement from the Federal Energy Regulatory Commission (FERC) on Aug. 12, 2004, which concluded that approval of the facilities, with appropriate mitigating measures as recommended, would have limited adverse environmental impact. Cheniere expects the final permit to be issued by FERC before year-end. Construction is anticipated to start by the end of first quarter of 2005. The facility is designed to process 2.6 Bcf/d of LNG.

HSBC Securities is an indirectly-held, wholly-owned subsidiary of HSBC Holdings plc, headquartered in London, which is one of the largest banking and financial services organizations in the world. Cheniere previously appointed HSBC Securities as its financial advisor in connection with the project financing of Sabine Pass LNG. SG CIB is the corporate and investment banking arm of Societe Generale Group, one of the largest financial services groups in the euro-zone.

Cheniere is also a 30% limited partner in Freeport LNG Development L.P., a 1.5 Bcf/d project which it began in 2000 and which received its permit from FERC in June 2004. Additionally, Cheniere is developing an LNG receiving terminal near Corpus Christi, TX, for which the permit application is presently being reviewed by FERC.

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