On Jan 16, Cheniere Energy, Inc. (LNG) stated that it has finalized the previously announced financing agreement with EIG Management Company, LLC. Per the note purchase agreement, the investment management company will buy convertible notes worth $1.5 billion from Cheniere.
The company added that the proceeds would be used as equity investment in the construction and setting up of the Corpus Christi Liquefaction Project.
Cheniere stated that the purchase would take place when it reaches final investment decision on the project, possibly in the first half of this year. The company also mentioned that it has received the required financing for the LNG project, including funds from its $1 billion worth notes issued in Nov 2014 and the $11.5 billion debt commitment announced last month.
The liquefied natural gas (“LNG”) export terminal will have provision for 3 trains and LNG production capacity of around 13.5 million tons per annum (mtpa). The project is likely to cost between $11.5 billion and $12.0 billion. Corpus Christi Liquefaction, LLC, an affiliate of Cheniere Energy, is developing this facility.
Last month, Cheniere announced that it has entered into an LNG sale and purchase agreement with EDP Energias de Portugal S.A. The latter would purchase about 0.77 mtpa of LNG on the startup of the third train of the LNG project.
Cheniere has also signed long-term deals with three units of Kinder Morgan, Inc (KMI). The firms have signed 15-year transportation and multi-year storage contracts. Per the terms of the contracts, Kinder Morgan would provide transportation service for 550,000 dekatherms of natural gas per day and storage services for 3 billion cubic feet of natural gas.
Houston, TX-based Cheniere Energy is primarily engaged in LNG-related businesses. Currently, Cheniere Energy holds a Zacks Rank #3 (Hold).
Better-ranked stocks from the same industry include GeoPark Limited (GPRK) and Midstates Petroleum Company, Inc. (MPO). While GeoPark sports a Zacks Rank #1 (Strong Buy), Midstates Petroleum holds a Zacks Rank #2 (Buy).
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