Houston-based Cheniere Energy Partners L.P. announced today that it has hired eight financial institutions to help it arrange a $4 billion loan package that will be used to develop and build a natural gas liquefaction facility in Cameron Parish and to buy a related pipeline.
The Sabine Pass LNG terminal’s initial phase will cost $4.5 billion to $5 billion to build, not including costs to finance the project.
Cheniere expects to finance the project through a combination of debt and stock.
The eight financial institutions are The Bank of Tokyo-Mitsubishi UFJ, Ltd., Credit Agricole Corporate and Investment Bank, Credit Suisse Securities (USA) LLC, HSBC, J.P. Morgan Securities LLC, Morgan Stanley, RBC Capital Markets, and SG Americas Securities LLC.
“Obtaining financing is one of the last steps to complete before proceeding with the construction of the first two liquefaction trains being developed at the Sabine Pass LNG terminal,”Charif Souki, Cheniere chairman and chief executive officer, said in a news release. “We have engaged an experienced group of financial institutions as our core banking group and look forward to completing the financing for the project in due course.”
The Federal Energy Regulatory Commission could decide this week to give Cheniere the go-ahead to build the plant. Cheniere has already won U.S. Department of Energy approval to export liquefied natural gas to countries that don’t have free trade agreements with the United States. Those countries, which include Japan and Spain, are some of the biggest importers of LNG.