Cheniere Energy finances Corpus Christi Liquefaction Project

Cheniere Energy, Inc. has signed a binding commitment letter with EIG Management Company, LLC, whereby investment funds managed by EIG have agreed to purchase approximately US$1.5 billion of convertible notes to finance the Corpus Christi Liquefaction project in Texas, USA.

The convertible notes would be issued by a to-be-formed wholly-owned subsidiary of Cheniere, which would be the indirect owner of 100% of the equity interests in Corpus Christi Liquefaction, LLC and Cheniere Corpus Christi Pipeline, L.P.

Cheniere Energy has also announced that it has entered into a subscription agreement with RRJ Capital II, Ltd. under which investment funds managed by RRJ will purchase, in aggregate, US$1.0 billion of unsecured convertible PIK notes issued by Cheniere.

RRJ will have the right to transfer a portion of the convertible notes to Temasek Holdings Limited and its affiliates.

Proceeds from the convertible notes would be used as equity to fund a portion of the costs of developing, constructing and placing into service the Corpus Christi Liquefaction.

The project would enable Cheniere to export 2.1 billion standard cubic feet (Bscf) per day of liquefied natural gas (LNG) and import sufficient LNG volume to send out 400 million standard cubic feet (MMscf) per day of natural gas. The proposed facilities associated with the LNG Terminal include the following:

• liquefaction facilities, including three liquefaction trains each capable of liquefying approximately 700 MMscf per day of natural gas;
• vaporization facilities, including two trains of ambient air vaporizers and send out pumps each capable of vaporizing sufficient LNG volume for each to send out approximately 200 MMscf per day of natural gas;
• LNG storage facilities, including three LNG storage tanks each capable of storing LNG equivalent to approximately 3.4 Bscf of natural gas; and
• marine terminal with two LNG carrier berths.

The project would also include 23 miles of new 48-inch-diameter natural gas pipeline and two compressor stations. The proposed liquefaction project is being designed for three trains capable of producing in aggregate up to 13.5 million tonnes per annum (mtpa).