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What: Shares of Cheniere Energy
So what: The proceeds will be used toward developing the liquefaction project at Sabine Pass, as well as purchasing the Creole Trail pipeline directly from Cheniere Energy. Analysts had expressed skepticism over Cheniere's ability to obtain financing for the gas liquefaction plant, so today's announcement comes as a nice surprise to investors.
Now what: Cheniere expects the debt financing for Sabine Pass to be completed by the end of the first quarter, with construction expected to commence in the first half of 2012. "Blackstone is one of the world's largest private equity investors, with significant experience in the energy sector and a history of successful development of large scale energy projects," Cheniere Chairman and CEO Charif Souki said. "We look forward to a successful working relationship with Blackstone as a value-added partner in the development of our Sabine Pass liquefaction project." Given the company's still-heavy debt load and highly volatile stock price, however, Cheniere remains best suited for speculative types.
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