Cheniere & ChevronTexaco Terminate Talks on Sabine Pass LNG

Sabine Pass LNG Plant
(Click to Enlarge)
Cheniere Energy has closed its previously announced public offering of 5 million shares of common stock at $60 per share, generating net cash proceeds of approximately $286,100,000 after deduction of underwriting discounts and expenses. The offering was made under the Company's currently effective shelf registration statement. Net proceeds are expected to be used to fund the equity requirements of the project financing for Cheniere's Sabine Pass LNG receiving terminal or other general corporate purposes.

Separately, after closing of the public offering, Cheniere Energy's wholly owned limited partnership Sabine Pass LNG, L.P. (Sabine) received notice from ChevronTexaco that Chevron U.S.A. Inc. (CUSA) has determined not to continue negotiations regarding CUSA's proposed acquisition of an equity interest in Sabine. ChevronTexaco also notified Cheniere that, as previously announced, CUSA will advise Sabine on or before December 20, 2004, whether it will proceed forward with its November 8, 2004, Terminal Use Agreement as a long-term user of reserved capacity at Cheniere's Sabine Pass LNG terminal.

Cheniere Energy, Inc. is a Houston-based developer of LNG Receiving Terminals and a Gulf of Mexico E&P company. Cheniere is developing Gulf Coast LNG Receiving Terminals near Sabine Pass in Cameron Parish, LA, in which it holds 100%; near Corpus Christi, TX, in which it holds 66.7%; and near the city of Cameron in Cameron Parish, LA in which it holds 100%. Cheniere is also a 30% limited partner in Freeport LNG Development, L.P., which is developing an LNG Receiving Terminal in Freeport, Texas. Cheniere conducts exploration for oil and gas in the Gulf of Mexico using a regional database of 7,000 square miles of PSTM 3D seismic data. Cheniere also owns 9% of Gryphon Exploration Company, along with Warburg, Pincus Equity Partners, L.P. which owns 91%.

Our Privacy Pledge

Most Popular Articles

Brent Crude Oil : $51.38/BBL 2.44%
Light Crude Oil : $50.43/BBL 2.26%
Natural Gas : $3.14/MMBtu 0.94%
Updated in last 24 hours