Blackstone Energy Partners Closes Sale of 42% Stake in Cheniere Energy Partners, L.P.
September 24 2020 - 3:37PM
Business Wire
Today, Blackstone (NYSE: BX) announced that private equity funds
managed by Blackstone Energy Partners have closed the sale of their
approximately 42% stake in Cheniere Energy Partners, L.P. to
Brookfield Infrastructure and funds managed by Blackstone
Infrastructure Partners. The transaction values the approximately
42% stake at $7 billion.
The sale represents the culmination of Blackstone Energy
Partners’ 8+ years of involvement with Cheniere. In 2012 Blackstone
Energy Partners and its affiliates invested $1.5 billion in
Cheniere Energy Partners to build the first two liquefaction trains
at the Sabine Pass LNG facility in Louisiana. Sabine Pass was the
first LNG export facility in the lower 48 states, providing a
critical link between North American gas producers and growing
international LNG demand centers. The construction of Sabine Pass
created 5,000 U.S. jobs and continues to support American energy
independence, generate export revenues, and provide cleaner, more
affordable energy to millions of people worldwide.
Commenting on the transaction, David Foley, Global Head of
Blackstone Energy Partners said: “Blackstone’s early equity
commitment to Cheniere enabled the timely construction of Sabine
Pass, the first LNG export facility in the lower 48 states and one
of the largest construction projects in the U.S. I’m proud of the
success of the project, the support we were able to provide to
Cheniere’s outstanding executive management team as they ably dealt
with various challenges over the years and the tremendous return we
delivered for our investors.”
Jack Fusco, Chief Executive Officer, Cheniere said:
“Cheniere is grateful for the collaborative and mutually beneficial
partnership we have had with Blackstone Energy Partners over the
past eight years. Today, Sabine Pass is a world-scale LNG complex,
providing flexible, reliable, and cost competitive U.S. LNG to
markets worldwide, and I would like to thank David Foley and the
Blackstone team for their contributions to Cheniere’s many
successes. We still have much to accomplish at Cheniere, and I look
forward to working alongside Blackstone Infrastructure Partners and
Brookfield Infrastructure Management to achieve our shared
goals.”
Sean Klimczak, Global Head of Blackstone Infrastructure
Partners added: “Under the leadership of Jack Fusco and his
team, Sabine Pass has successfully transitioned from a construction
project to a global leader in the LNG sector. Cheniere benefits
from long-term contracted revenues across a diverse set of
investment-grade counterparties, generating the stable and growing
cash flows we seek to add to our infrastructure investment
portfolio. Our team is excited to partner with Brookfield to invest
in this large-scale, high quality infrastructure company.”
Jefferies LLC and Morgan Stanley acted as financial advisors to
Blackstone Energy Partners, while Latham & Watkins acted as
legal advisor. Rothschild & Co acted as financial advisor to
Blackstone Infrastructure Partners, while Simpson Thacher &
Bartlett served as legal advisor.
About Blackstone Energy Partners
Blackstone Energy Partners is Blackstone's energy-focused
private equity business, a leading energy investor with a
successful long-term record, having invested over $17 billion
equity globally across a broad range of sectors within the energy
industry. Our investment philosophy is based on backing exceptional
management teams with flexible capital to provide solutions that
help energy companies grow and improve performance, thereby
delivering cleaner, more reliable and affordable energy to meet the
needs of the global community. In the process, we build stronger,
larger scale enterprises, create jobs and generate lasting value
for our investors, employees and all stakeholders.
About Blackstone Infrastructure Partners
Infrastructure is one of Blackstone's most active investment
areas. Over the last 15 years, we have invested in more than $46
billion of infrastructure-related projects globally. Blackstone’s
approach to infrastructure investing is one that puts a focus on
responsible stewardship and community engagement. In areas such as
clean power, energy transmission, communications technology, and
many others, we have helped move forward sustainable projects that
drive local economic growth and job creation, and enhance quality
of life. In doing so, we work closely with civic stakeholders to
help make sure that critical infrastructure is developed in a
responsible manner that is responsive to community needs.
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version on businesswire.com: https://www.businesswire.com/news/home/20200924005862/en/
Blackstone Paula Chirhart 347-463-5453
paula.chirhart@blackstone.com
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