Cheniere to Get $2.5 Billion to Build Texas LNG Terminal

Cheniere Energy Inc. LNG has found buyers for $2.5 billion in convertible notes that will help fund construction of its Corpus Christi, Texas, facility to export natural gas from booming U.S. shale production.EIG Management Co. LLC and RRJ Capital II Ltd. will buy the notes, which can be converted into common stock in Cheniere, the Houston-based company said in two separate statements today. RRJ will have the right to transfer a portion of the $1 billion in notes it’s buying to Temasek Holdings Pte, Singapore’s state-owned investment company.The Corpus Christi facility would be Cheniere’s second project, after Sabine Pass, to export natural gas from shale-rock formations. Gas producers are seeking new markets for the fuel as U.S. output reached a record 66.7 billion cubic feet a day last year. By cooling the gas to minus 270 degrees Fahrenheit, it can be reduced to a liquid state for shipment overseas by tankers.“We are continuing to make progress on our Corpus Christi liquefaction project and expect to commence construction in early 2015,” Charif Souki, chairman and chief executive officer of Cheniere, said in the statements.The announcement today marks the second investment in Cheniere by RRJ and Temasek, which joined forces in May 2012 to buy shares in the company for about $468 million. Temasek sold 9.2 million shares last year after the stock price tripled. Former Goldman Sachs Group Inc. partner Richard Ong runs RRJ with his brother Charles, who was previously chief investment officer for Temasek.

via Cheniere to Get $2.5 Billion to Build Texas LNG Terminal – Bloomberg.

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