Cheniere gives Sabine Pass green light

by on July 31, 2012 2:24 am BST

Cheniere is funding the project costs with about $2 billion of equity and $3.6 billion of debt, giving it $5.4 billion in available cash to build the two trains proposed for the first phase of the project.

The final investment decision is still subject to the closing of funding. US equity giant Blackstone Group has agreed to purchase $1.5 billion of Cheniere’s Class B units, while the company’s subsidiary, Cheniere Energy Incorporated will buy $500 million of Class B units.

Once the funding is finalised, Cheniere will issue a full notice to proceed to Bechtel, which has been awarded an engineering, procurement and construction contract for the liquefaction trains.

The first liquefaction train is expected to start operations as early as 2015, with the second liquefaction train expected to commence operations six to nine months later.