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).
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Articles from Struck
Cabot Forms Pearsall Shale JV with Osaka Gas Unit
Cabot Oil & Gas has struck an agreement with a U.S. unit of Osaka Gas Co. Ltd. for the sale of a 35% nonoperated working interest in the Pearsall Shale in 50,000 net acres leased by the company in Atascosa, Frio, La Salle and Zavala counties in Texas for $250 million.
7.6 Quake Hits Mexico; LNG Appears Unscathed
A powerful earthquake measuring 7.6 on the Richter Scale struck Mexico Tuesday centered in the state of Guerrero near the Pacific Coast city of Acapulco and rattling Mexico City nearly 250 miles away. There were no initial reports of deaths and the nation’s liquefied natural gas (LNG) receiving terminals appeared to be undamaged.
CFTC Strikes Contentious Swap Dealer Rule from Agenda
The Commodity Futures Trading Commission (CFTC) has struck from its meeting agenda Thursday a much-anticipated and widely criticized final rule to define “swap dealers” and “major swap participants.” The rule is one of the most contentious before the Commission and would lay the groundwork for the agency to proceed with other regulatory reforms under the Dodd-Frank Wall Street Reform Act.
Shale’s Role Grows Substantially in Anadarko Portfolio
The stature of Anadarko Petroleum Corp.’s shale operations in the United States grew substantially last year, the company said. Going forward, emphasis at home will continue to be on shales and liquids-rich production.
Idaho Weighs Gas Drilling Proposals
The Idaho Association of Counties (IAC) and the Idaho Petroleum Council (IPC) have struck an agreement on guidelines that would allow counties more control over natural gas exploration operations.
Weir Makes Play for Another Unconventional Drilling Provider
UK-based Weir Group plc this week struck a $176 million deal to acquire Dallas-based Novatech LLC, its second oilfield services purchase in two months. The transaction would give Weir an even bigger footprint in North America’s onshore.
Marubeni Adds Eagle Ford Stake to Shale Portfolio
A unit of Japan’s Marubeni Corp. has struck a deal to acquire a 35% stake in Dallas-based Hunt Oil Co.’s Eagle Ford Shale holdings. Marubeni pledged Friday to grow its stake in shales, in the United States and around the world.
Industry Brief
Atlas Pipeline Partners LP (APL) struck a long-term, fee-based agreement with ExxonMobil Corp. subsidiary XTO Energy Inc. to provide gas gathering and processing services for up to an incremental 60 MMcf/d from the Woodford Shale region of Oklahoma to its Velma processing facility in Velma, OK. The agreement supports APL’s planned 60 MMcf/d expansion of its Velma system. The cryogenic facility is expected to enter service in mid-2012. XTO would use the expanded facility, which would have capacity of 160 MMcf/d after the expansion is completed.
Two Shippers Take All of Tennessee MPP Project Capacity
El Paso Corp.’s Tennessee Gas Pipeline Co. (TGP) has struck two long-term contracts for service on its MPP project, which is intended to improve takeaway capacity from the Marcellus Shale through expansion of TGP’s 300 Line in Pennsylvania.
