Plains All American Pipeline, L.P. and Cheniere Energy Announce Long-Term Storage Agreement
April 25 2016 - 8:32AM
Business Wire
Plains All American Pipeline, L.P. (NYSE:PAA) and Cheniere
Energy Partners, L.P. (NYSE MKT:CQP) announced today that PAA’s
subsidiary, Pine Prairie Energy Center, LLC (“Pine Prairie”), has
entered into a 10-year firm storage service agreement with Cheniere
Energy Partners’ subsidiary, Sabine Pass Liquefaction, LLC. Under
the new agreement, Pine Prairie will provide 8 billion cubic feet
("Bcf") of firm natural gas storage capacity to Cheniere beginning
in 2018 to serve the storage needs of the company’s Sabine Pass
Liquefaction facility.
“We are excited to extend our existing relationship with
Cheniere well into the next decade, and look forward to providing
critical storage and balancing needs throughout commissioning and
operations of the Sabine Pass facility,” said Senior Vice President
Ben Reese at PAA Natural Gas Storage. “As demand for natural gas
continues to grow, PAA’s flexible, reliable and highly
interconnected gas storage assets are uniquely located to provide
high injection, withdrawal and balancing services to meet the
diverse, growing needs of the market.”
“Pine Prairie has been a good partner in helping us manage the
variability in loads during commissioning of Train 1 at our Sabine
Pass LNG terminal,” said Corey Grindal, Vice President of Supply at
Cheniere. “We expanded our relationship with Pine Prairie because
the storage facility is located in a place where we can easily
access our existing infrastructure connected to the terminal. With
this new agreement, we will be able to more effectively manage the
load swings as we construct and operate our liquefaction trains at
Sabine Pass.”
Plains All American Pipeline, L.P. is a publicly traded master
limited partnership that owns and operates midstream energy
infrastructure and provides logistics services for crude oil,
natural gas liquids ("NGL"), natural gas and refined products. PAA
owns an extensive network of pipeline transportation, terminalling,
storage and gathering assets in key crude oil and NGL producing
basins and transportation corridors and at major market hubs in the
United States and Canada. On average, PAA handles over 4.4 million
barrels per day of crude oil and NGL in its Transportation segment.
PAA is headquartered in Houston, Texas. Pine Prairie Energy Center,
LLC, a subsidiary of PAA, operates a natural gas storage facility
in Evangeline Parish, Louisiana. Pine Prairie currently consists of
five natural gas storage caverns and a bi-directional header
pipeline system that has nine interconnects with interstate natural
gas pipelines. Pine Prairie’s certificate of public convenience
grants Pine Prairie the authority to receive and inject up to 2.4
Bcf per day and to withdraw and deliver up to 3.2 Bcf per day.
Cheniere Partners, through its subsidiary, Sabine Pass
Liquefaction, LLC ("SPL"), is developing and constructing natural
gas liquefaction facilities at the Sabine Pass LNG terminal
adjacent to the existing regasification facilities. Cheniere
Partners, through SPL, plans to construct over time up to six
liquefaction trains, which are in various stages of development and
construction. Trains 1 and 2 are undergoing commissioning, Trains 3
through 5 are under construction and Train 6 is fully permitted.
Each liquefaction train is expected to have a nominal production
capacity of approximately 4.5 million tonnes per annum ("mtpa") of
LNG. SPL has entered into six third-party LNG sale and purchase
agreements ("SPAs") that in the aggregate equate to approximately
19.75 mtpa of LNG and commence with the date of first commercial
delivery of Trains 1 through 5 as specified in the respective SPAs.
For additional information, please refer to the Cheniere Partners
website at www.cheniere.com and Annual Report on Form 10-K for the
fiscal year ended December 31, 2015, filed with the Securities and
Exchange Commission.
Forward-Looking Statements:
Certain matters discussed in this release are forward-looking
statements that involve risks and uncertainties that could cause
results or outcomes to differ materially from results or outcomes
anticipated in the forward-looking statements. These risks and
uncertainties include, among other things, inability to commence
the operation of facilities or significant delays in the
commencement of such operations, whether due to (i) delays in
receipt of supplies, materials or labor, (ii) inability to obtain
or delays in the receipt of necessary licenses, permits, approvals,
consents, rights of way or other governmental or third party
requirements, or (iii) other factors; the impact of current and
future laws, rulings, orders, governmental regulations, and
accounting standards; environmental liabilities, issues or events;
general economic, market or business conditions and the
amplification of other risks caused by volatile financial markets,
capital constraints and liquidity concerns; and other factors and
uncertainties inherent in the relevant operations of Pine Prairie
and SPL as discussed in the filings made by Plains All American
Pipeline, L.P. and Cheniere Energy Partners, L.P. with the
Securities and Exchange Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20160425005764/en/
Plains:Ryan Smith, 866-809-1291Director, Investor
RelationsorCheniere:Investors:Randy Bhatia, 713-375-5479Katy Cox,
713-375-5079Media:Faith Parker, 713-375-5663
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