NEWS
Cheniere raising $500m for Gulf Coast LNG
Houston, Aug 22 (LNG journal)
- Cheniere LNG Holdings of the US is raising $500 million for its remaining equity requirements for the Sabine Pass LNG receiving terminal on the Louisiana Gulf Coast and other needs, said parent company Cheniere Energy Inc.
Cheniere said it has engaged global Swiss bank Credit Suisse to arrange the loans, which would also be used for other purposes, including a reserve account for debt service obligations, and other equity requirements such as funds for the potential expansion of Sabine Pass and other projects.
"The facility would have a 7-year term and would be secured by the debt service reserve, all of the capital stock or other equity interests directly held by Holdings with respect to the projects and all of the capital stock of Holdings," the statement added.
The Sabine Pass terminal will be located on 853 acres of land along the Sabine Pass Channel in Cameron Parish, Louisiana and will be operated as a tolling facility.
This means that companies will sign long-term terminal use agreements that will give sellers access to the US market, and US natural gas buyers access to the global supplies of LNG.
Last month, Cheniere filed with the US Federal Energy Regulatory Commission to expand the capacity of its receiving Sabine terminal from 2.6 billion cubic feet per day to 4 billion cubic feet per day
