Cheniere

Cheniere Energy Partners LP has struck commitments for $3.4 billion to fund the costs of developing, constructing and placing into service the first two liquefaction trains of the Sabine Pass LNG liquefaction project, it said. Sabine Pass Liquefaction is finalizing definitive loan documents with lenders and is working on commitments of about $200 million with additional institutions. The credit facility is expected to be closed by the end of the month. “Including the recently announced $2 billion of equity commitments [see Daily GPI, May 25], we have now received financial commitments of approximately $5.4 billion for the construction of trains 1 and 2 of our liquefaction project,” said CEO Charif Souki. “Our ability to access a very large credit facility will significantly reduce our costs of financing during construction. We expect to reach a final investment decision and issue notice to proceed to Bechtel upon meeting all conditions precedent under the financial agreements…” Sabine Pass is the only proposed U.S. liquefaction project to have been granted authority to export to non-free trade agreement countries (see Daily GPI, April 17).

Creole Trail Pipeline Co. LP has asked FERC for the go-ahead to modify its system to accommodate the delivery of raw gas to a liquefaction project that Cheniere Energy affiliates Sabine Pass LNG and Sabine Pass Liquefaction are planning to build in Cameron Parish, LA.

The Sierra Club is making a last ditch effort to derail exports of liquefied natural gas (LNG) by Cheniere Energy Inc.’s Sabine Pass LNG, and what it claims will be the consequent expansion of hydraulic fracturing (fracking) well stimulation activities should exports go forward.

The large manufacturing sector is expressing strong opposition to a proposal released earlier this month in the U.S. Senate (S 1863) to expand tax credits for natural gas transportation infrastructure and vehicles (see NGI, Nov. 21). At the same time, industrial users struck back against potential widespread U.S. exports of gas.

Cheniere Energy Partners LP unit Sabine Pass Liquefaction LLC is in talks with Sumitomo Corp. to provide up to 1.5 million metric tons/year of processing capacity at the Sabine Pass LNG terminal in Cameron Parish, LA. Sabine Pass is seeking to add liquefaction capability at the terminal for liquefied natural gas (LNG) export from the United States and has announced nonbinding discussions with several parties for capacity (see Daily GPI, Jan. 21). Sumitomo is an integrated trading and investment company based in Tokyo.

Cheniere Energy subsidiary Sabine Pass Liquefaction LLC is disputing claims that its application to export liquefied natural gas (LNG) would result in higher gas prices in the United States and the loss of domestic manufacturing jobs.

An abundance of shale natural gas reserves in China could one day cause the country to turn away from pipeline imports and liquefied natural gas (LNG), suggested analysts at Barclays Capital. But China must unlock the secrets of its shales and develop infrastructure to move the gas produced, both of which will delay any shale revolution in the People’s Republic.

Due to a possible leak, ANR said Thursday it would begin unplanned pipeline inspection on the 708 Line in the Southeast Area Fuel Segment, causing the Cheniere Perdue location to be shut in until further notice.

Kinder Morgan Louisiana Pipeline LLC has asked FERC to begin the pre-filing process for its proposed pipeline that would provide service from Cheniere LNG’s 2.6 Bcf/d Sabine Pass terminal now under construction in Cameron Parish, LA.