Blackstone on Sept. 24 closed the sale of its stake in Cheniere Energy Partners LP valued at $7 billion, representing the culmination of the firm’s involvement with the Houston-based LNG producer.
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—the first LNG export facility in the Lower 48.
“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.,” David Foley, global head of Blackstone Energy Partners, said in a statement Sept. 24.
Blackstone sold the approximately 42% stake in Cheniere Energy Partners to Brookfield Infrastructure and funds managed by Blackstone Infrastructure Partners.
In a statement commenting on the transaction, Cheniere CEO Jack Fusco said: “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.”
Cheniere’s Sabine Pass terminal in Louisiana sent out its first cargo in February 2016. The company also opened its $15 billion Corpus Christi LNG export facility in November 2018.
The company anticipates that Train 3 at its Corpus Christi LNG facility will begin operations in 2021 and Train 6 at the Sabine Pass LNG facility in 2022. An additional expansion at the Corpus Christi LNG facility is also in the works, according to the company’s website.
Recently, Abu Dhabi Investment Authority—the United Arab Emirates’ biggest sovereign wealth fund—disclosed a 5.05% stake in Cheniere Energy, according to a filing with the U.S. Securities and Exchange Commission.
Reuters on Sept. 16 reported the value of the stake at around $615 million, based on Cheniere’s last traded price.
Jefferies LLC and Morgan Stanley were financial advisers to Blackstone Energy Partners for the transaction. Latham & Watkins was its legal adviser. Rothschild & Co. was financial adviser to Blackstone Infrastructure Partners, while Simpson Thacher & Bartlett served as its legal adviser.
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