HOUSTON, May 13, 2015 /PRNewswire/ -- Cheniere
Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that its
Board of Directors has made a positive Final Investment Decision
("FID") with respect to its liquefaction project near Corpus Christi, Texas (the "CCL Project") and
has issued a notice to proceed ("NTP") to Bechtel Oil, Gas and
Chemicals, Inc. ("Bechtel") to construct the first two natural gas
liquefaction trains. The CCL Project is designed for up to three
trains with expected aggregate nominal production capacity of
approximately 13.5 million tonnes per annum ("mtpa"), three LNG
storage tanks with capacity of approximately 10.1 Bcfe, two LNG
carrier docks and a 22-mile, 48" natural gas supply pipeline. The
first train is expected to start operations as early as 2018, with
the second train expected to commence operations approximately six
to nine months thereafter.
"We have initiated construction on our second LNG export
facility, the Corpus Christi
liquefaction project, located on the Coastal Bend of Texas along the Gulf
of Mexico. Including our LNG export facility at Sabine Pass, we now have six trains under
construction, with first LNG expected at Sabine Pass from Train 1 by year end," said
Charif Souki, Chairman and CEO of
Cheniere. "For these major projects, getting to the point of
commencing construction represents the culmination of years of
dedicated hard work by all of our employees, Bechtel, other
strategic partners, and legislative and government officials. We
would like to thank all for their efforts and look forward to
successful project execution in Corpus
Christi."
Total project costs of approximately $11.5 billion for the first two trains, two LNG
storage tanks, one dock and the natural gas supply pipeline will be
funded with approximately $3.1
billion of project equity and approximately $8.4 billion of debt. Corpus Christi Holdings,
LLC ("Corpus Christi Holdings"), a wholly owned subsidiary of
Cheniere, has closed on its previously announced credit facility
("CCL credit facility") for the first two trains totaling
approximately $8.4 billion.
Subsequent to the close of the CCL credit facility, Cheniere CCH
HoldCo II, LLC, a wholly owned subsidiary of Cheniere, has closed
on $1.0 billion of the previously
announced $1.5 billion aggregate
principal amount of 11% Senior Secured Notes due 2025 (the
"Convertible Notes") with EIG Management Company, LLC. The
Convertible Notes, together with the CCL credit facility and an
equity contribution of approximately $500
million from Cheniere, complete the financing required to
begin developing, constructing and placing into service the first
two trains.
About Cheniere Energy, Inc.
Cheniere Energy, Inc. is a Houston-based energy company primarily engaged
in LNG-related businesses. Through its subsidiary, Cheniere Energy
Partners, L.P., Cheniere is developing a liquefaction project at
the Sabine Pass LNG terminal adjacent to the existing
regasification facilities for up to six trains, each of which is
expected to have a nominal production capacity of approximately 4.5
mtpa. Construction has begun on trains 1 through 4 at the SPL
Project. Cheniere is also developing liquefaction facilities near
Corpus Christi, Texas. The CCL
Project is designed for up to three trains, with expected aggregate
nominal production capacity of approximately 13.5 mtpa of LNG,
three LNG storage tanks with capacity of approximately 10.1 Bcfe
and two LNG carrier docks. Cheniere believes that LNG exports from
the CCL Project could commence as early as 2018. Construction has
begun on the first two trains.
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 fact, included herein are "forward-looking statements."
Included among "forward-looking statements" are, among other
things, (i) statements regarding Cheniere's business strategy,
plans and objectives, including the construction and operation of
the liquefaction facilities, (ii) statements regarding expectations
regarding regulatory authorization and approvals, (iii) statements
expressing beliefs and expectations regarding the development of
Cheniere's LNG terminal and pipeline businesses, including
liquefaction facilities, (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
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'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'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, Cheniere does not assume a duty to update these
forward-looking statements.
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SOURCE Cheniere Energy, Inc.