HOUSTON, June 3 /PRNewswire-FirstCall/ -- Cheniere Energy
Partners, L.P. ("Cheniere") (NYSE Amex: CQP), a subsidiary of
Cheniere Energy, Inc. (NYSE Amex: LNG), announced today that its
general partner's Board of Directors has approved the initiation of
a project to add liquefaction services at the Sabine Pass LNG
receiving terminal in Cameron Parish,
Louisiana. Adding liquefaction capabilities would
transform the Sabine Pass terminal
into a bi-directional facility capable of liquefying and exporting
natural gas in addition to importing and regasifying
foreign-sourced LNG. Cheniere expects to take advantage of
the existing infrastructure at the Sabine
Pass terminal to offer customers bi-directional services at
attractive pricing. Based on preliminary estimates, the
expected fee for bi-directional services will be approximately
$1.40/MMBtu to $1.75/MMBtu. This added service would
provide customers with an attractive option to source natural gas
supply from the U.S. pipeline grid at prices indexed to Henry
Hub.
"We believe current market fundamentals have created an
opportunity for the U.S. to offer natural gas to global markets at
competitive prices. The U.S. is experiencing an increase in
natural gas production, primarily driven by unconventional gas
plays, while natural gas demand in the U.S. continues to lag behind
market projections. Due to the depth of the markets in
South Louisiana with an abundance
of supply and existing pipeline infrastructure, we can provide an
additional outlet for U.S. natural gas production while offering a
low cost source of supply for global buyers seeking alternatives to
oil-indexed contracts," said Charif
Souki, Chairman and CEO. "The ability to buy or sell
natural gas in one of the world's most liquid natural gas markets
provides industry players with a very powerful tool to manage their
portfolios. We have begun pursuing contractual arrangements
related to the project and have received favorable preliminary
indications of market interest from both potential natural gas
buyers interested in capacity and U.S. natural gas producers
interested in committing supply to the project. Furthermore,
we believe the opening of new markets for U.S. natural gas would
reduce price volatility, increase stability in markets, and support
continued energy investments in the U.S."
The Sabine Pass site can
readily accommodate up to 4 LNG trains capable of processing
approximately 2 Bcf/d of natural gas. The capacity of each
liquefaction train would be approximately 3.5 million tons per
annum (mtpa). The initial project would include two trains
with liquefaction capacity of approximately 1 Bcf/d. Further
expansion would be considered based upon customer interest.
Cheniere estimates that it can construct liquefaction capacity
comparable to liquefaction expansion economics since the
Sabine Pass terminal already has
many of the needed facilities for an export terminal.
Cheniere would use its existing infrastructure, including
five storage tanks and two berths at the Sabine Pass terminal, as well as Cheniere
Energy Inc.'s 94-mile Creole Trail Pipeline, which would be
reconfigured as a bi-directional system. The 853-acre
Sabine Pass site is strategically
situated to provide export services given its large acreage
position, proximity to unconventional gas plays in Louisiana and Texas, and its interconnections with multiple
interstate and intrastate pipeline systems.
Cheniere plans to work with Bechtel Oil, Gas and Chemicals, Inc.
to design and construct the liquefaction facilities, using the
ConocoPhillips Optimized Cascade® liquefaction technology.
This proven process has been successfully deployed at several LNG
export terminals around the world, and offers a high degree of
reliability and control.
Assuming typical project development scenarios, Cheniere
anticipates LNG export could commence as early as 2015.
Cheniere plans to make a request to the Federal Energy
Regulatory Commission to begin the NEPA pre-filing process by the
end of June 2010. Cheniere will
work with federal and state regulators to facilitate the permitting
process. Commencement of construction is subject to
regulatory approvals and a final investment decision contingent
upon Cheniere obtaining satisfactory construction contracts and
long-term customer contracts sufficient to underpin financing of
the project.
Cheniere and Cheniere Energy, Inc. will host a live webcast at
3:00pm EDT on Friday, June 4, 2010 to discuss this project.
Participants are encouraged to access the webcast and "Sabine
Pass Facility Expansion" presentation which will be available at
either www.cheniereenergypartners.com or www.cheniere.com.
A limited number of phone lines will also be available at (800)
860-2442. International callers should dial (412) 858-4600. All
callers should ask for the "Cheniere Company Update Call."
Replays of both the conference call and webcast will be
available for two weeks at www.cheniereenergypartners.com or
www.cheniere.com.
Cheniere owns 100 percent of the Sabine Pass LNG receiving
terminal located in western Cameron
Parish, Louisiana on the Sabine Pass Channel. The
Sabine Pass terminal is now
operating with sendout capacity of 4.0 Bcf/d and storage capacity
of 16.9 Bcfe. Additional information about Cheniere Energy
Partners, L.P. may be found on its website:
www.cheniereenergypartners.com.
Cheniere Energy, Inc. is a Houston-based energy company primarily engaged
in LNG related businesses, and owns and operates the Sabine Pass
LNG receiving terminal through its 90.6 percent ownership interest.
It also owns and operates the Creole Trail pipeline in
Louisiana. Cheniere is
pursuing related business opportunities both upstream and
downstream of the Sabine Pass LNG receiving terminal.
Additional information about Cheniere Energy, Inc. may be
found on its web site at www.cheniere.com.
This press release contains certain statements that may include
"forward-looking statements" within the meanings of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical facts, included herein are "forward-looking statements."
Included among "forward-looking statements" are, among other
things, (i) statements regarding business strategy, plans and
objectives of Cheniere Energy Partners and Cheniere Energy, Inc.
and (ii) statements expressing beliefs and expectations regarding
the development of Cheniere Energy Partners' and Cheniere Energy,
Inc.'s business, including the planned liquefaction project.
Although Cheniere Energy Partners and Cheniere Energy, Inc. believe
that the expectations reflected in these forward-looking statements
are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect.
Cheniere Energy Partners' and Cheniere Energy, Inc.'s actual
results could differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors,
including those discussed in Cheniere Energy Partners' and
Cheniere Energy, Inc.'s periodic reports that are filed with and
available from the Securities and Exchange Commission. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Other than as
required under the securities laws, neither Cheniere Energy
Partners nor Cheniere Energy, Inc. assume a duty to update these
forward-looking statements.
SOURCE Cheniere Energy Partners, L.P.