Cheniere Evaluating Strategic Options to Enhance Shareholder Value
Cheniere Energy, Inc. announced that it is evaluating strategic options to enhance shareholder value, including options to optimize the value of the Sabine Pass LNG receiving terminal and the regasification capacity at the facility held under a long-term terminal use agreement by its wholly-owned subsidiary, Cheniere Marketing, Inc. Cheniere has engaged Credit Suisse as its financial advisor in connection with its evaluation. The Sabine Pass terminal, designed with a peak send-out capacity of 4.3 Bcf/d, is scheduled to come on line in the second quarter of this year with an initial send-out capacity of 2.6 Bcf/d. Capacity at the terminal has been contracted under 20-year agreements, 2.0 Bcf/d by Cheniere Marketing and 1.0 Bcf/d each by two major integrated energy companies, Total and Chevron.
"After three years of construction, the Sabine Pass LNG receiving terminal is about to be placed into service," said Charif Souki, Chairman and CEO. "Sabine Pass will be the largest LNG receiving terminal in North America by regasification capacity and will have 16.8 Bcf of LNG storage capacity with two berths capable of handling the largest LNG vessels. It is located in Cameron Parish, Louisiana on 853 acres of land remote from dense population and is just 3.7 miles from the open waters of the Gulf of Mexico. We do not believe that our current market valuation is reflective of the true value of this unique asset, and we are therefore exploring options to enhance value for our shareholders."
The Sabine Pass LNG receiving terminal is owned by Cheniere Energy Partners, L.P., in which Cheniere Energy, Inc. has a 90.6% interest through its ownership of common units, general partner units and subordinated units.
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