HOUSTON, Feb. 21, 2014 /PRNewswire/ -- Cheniere
Energy Partners LP Holdings, LLC ("Cheniere Partners Holdings")
(NYSE MKT: CQH) reported a net loss of $54,000 for the quarter and year ended
December 31, 2013. Results
included general and administrative expenses.
We were formed by Cheniere Energy, Inc. ("Cheniere") to hold its
limited partner interests in Cheniere Energy Partners, L.P.
("Cheniere Partners"), a publicly traded limited partnership (NYSE
MKT: CQP). Our only business consists of owning Cheniere Partners'
limited partner units, along with cash or other property that we
receive as distributions in respect of such units and, accordingly,
our results of operations and financial condition are dependent on
the performance of Cheniere Partners. We own common units,
Class B units and subordinated units representing an aggregate of
approximately 55.9% of the outstanding Cheniere Partners units as
of December 31, 2013. We account for
our investment in Cheniere Partners using the equity method of
accounting, and our investment currently has a zero balance due to
suspended losses.
Initial Public Offering ("IPO")
On December 12, 2013, we completed
our IPO under which we sold 36,000,000 common shares to the public
at a price of $20.00 per share. We
used the net proceeds of approximately $665.0 million from our IPO to repay intercompany
indebtedness and payables to Cheniere of approximately $272.0 million and distributed the remaining
proceeds to Cheniere.
Cheniere Partners' Sabine Pass Liquefaction Project
Update
Cheniere Partners is developing and constructing natural gas
liquefaction facilities (the "Liquefaction Project") at the Sabine
Pass LNG terminal adjacent to the existing regasification
facilities through its wholly owned subsidiary, Sabine Pass
Liquefaction. Cheniere Partners also owns the 94-mile Creole Trail
Pipeline through its wholly owned subsidiary, Cheniere Creole Trail
Pipeline, L.P., which interconnects the Sabine Pass LNG terminal
with a number of large interstate pipelines.
Cheniere Partners continues to make progress on its Liquefaction
Project, which is being developed for up to six natural gas
liquefaction trains ("Trains"), each with a nominal production
capacity of approximately 4.5 mtpa. Federal Energy Regulatory
Commission ("FERC") and Department of Energy ("DOE") approvals for
Trains 1 through 4 have been received, and all required regulatory
applications with the FERC and DOE to develop Trains 5 and 6 have
been filed.
The Trains are in various stages of development.
- Construction on Trains 1 and 2 began in August 2012, and as of January 31, 2014, the overall project for Trains
1 and 2 was approximately 57.1% complete, which is ahead of the
contractual schedule. Based on Cheniere Partners' current
construction schedule, Cheniere Partners anticipates that Train 1
will produce LNG by late 2015.
- Construction on Trains 3 and 4 began in May 2013, and as of January 31, 2014, the overall project for Trains
3 and 4 was approximately 21.6% complete. To date, soil
stabilization has been completed and pile driving, the next
critical path item, is underway. Cheniere Partners expects Trains 3
and 4 to become operational in late 2016 and 2017,
respectively.
- For Trains 5 and 6, two LNG sale and purchase agreements
("SPAs") have been completed for approximately 3.75 mtpa, in
aggregate, of LNG volumes that commence with the date of first
commercial delivery of Train 5. In September 2013, the complete application with the
FERC was filed. To date, authorization has been received from
the DOE to export 503 Bcf of LNG volumes from Trains 5 and 6 to FTA
countries. Non-FTA authorization is pending.
Liquefaction
Project Timeline
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Target
Date
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Milestone
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Trains
1 &
2
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Trains
3 &
4
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Trains
5 &
6
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DOE export
authorization
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Received
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Received
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Received
FTA
Pending
Non-FTA
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Definitive commercial
agreements
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Completed 7.7
mtpa
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Completed 8.3
mtpa
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T5: Completed T6:
2014
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- BG Gulf Coast LNG,
LLC
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4.2 mtpa
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1.3 mtpa
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- Gas Natural
Fenosa
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3.5 mtpa
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- KOGAS
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3.5 mtpa
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- GAIL (India)
Ltd.
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3.5 mtpa
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- Total Gas &
Power N.A.
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2.0 mtpa
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- Centrica
plc
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1.75 mtpa
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EPC
contract
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Completed
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Completed
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2015
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Financing
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2015
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- Equity
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Completed
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Completed
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- Debt
commitments
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Received
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Received
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FERC
authorization
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- FERC
Order
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Received
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Received
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2015
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- Certificate to
commence construction
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Received
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Received
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Issue Notice to
Proceed
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Completed
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Completed
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2015
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Commence
operations
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2015/2016
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2016/2017
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2018/2019
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Dividends
When Cheniere Partners makes cash distributions to us with
respect to our Cheniere Partners units, we will pay dividends to
our shareholders consisting of the cash that we receive from
Cheniere Partners, less income taxes and reserves established by
our Board of Directors.
On February 11, 2014 we announced
that our Board of Directors declared a quarterly cash dividend of
$0.017 per common share representing
limited liability company interests in Cheniere Partners Holdings.
The dividend will be payable on March 3,
2014 to shareholders of record as of the close of business
on February 21, 2014.
Cheniere Partners Holdings owns a 55.9% limited partner interest
in Cheniere Partners, a publicly traded limited partnership (NYSE
MKT:CQP). Cheniere Partners Holdings' only business consists
of owning Cheniere Partners units, and, accordingly, its results of
operations and financial condition are dependent on the performance
of Cheniere Partners. Cheniere Partners owns and operates liquefied
natural gas ("LNG") regasification facilities and, adjacent to
these facilities, currently has natural gas liquefaction facilities
under construction. Additional information is available on its
website www.chenierepartnersholdings.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 Cheniere Partners' and Cheniere
Partners Holdings' business strategy, plans and objectives,
including the construction and operation of liquefaction
facilities, (ii) statements regarding expectations regarding
regulatory authorizations and approvals, (iii) statements
expressing beliefs and expectations regarding the development of
Cheniere Partners' LNG terminal and liquefaction business, (iv)
statements regarding the business operations and prospects of third
parties, (v) statements regarding potential financing arrangements,
and (vi) statements regarding future discussions and entry into
contracts. Although Cheniere Partners Holdings believes 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 Partners
Holdings' 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 Partners
Holdings' 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, Cheniere Partners Holdings does not assume a duty
to update these forward-looking statements.
CONTACTS:
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Investors: Randy
Bhatia:
713-375-5479
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Christina Burke:
713-375-5104
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Media: Diane Haggard:
713-375-5259
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SOURCE Cheniere Energy Partners LP Holdings, LLC