Wednesday, February 2, 2011

Cheniere signs MOU with Sumitomo for Sabine Pass LNG terminal

CAMERON PARISH, La. - Cheniere Energy Partners, L.P. (NYSE Amex: CQP) announced on Jan. 27 that its subsidiary, Sabine Pass Liquefaction, LLC, has entered into a non-binding memorandum of understanding with Sumitomo Corp., under which Sumitomo intends to contract up to approximately 1.5 million tons per annum (mtpa) of processing capacity at the Sabine Pass LNG terminal located in Cameron Parish, La.

Under the MOU, Sumitomo and Sabine have agreed to proceed with negotiations of definitive agreements for Sumitomo to contract bi-directional capacity, subject to receipt of regulatory approvals and making a final investment decision to construct the liquefaction facilities.

"We are pleased to have Sumitomo as a customer at Sabine Pass." said Charif Souki, chairman and CEO of Cheniere Energy Partners. "With this MOU we have up to 7.7 million tons per annum of LNG processing capacity reserved. We have reached our targeted capacity for the first two trains and look forward to advancing discussions and entering into definitive agreements."

Cheniere Partners owns 100 percent of the Sabine Pass LNG terminal located in western Cameron Parish, La., on the Sabine Pass Channel. The terminal has sendout capacity of 4.0 Bcf/d and storage capacity of 16.9 Bcfe.

As currently contemplated, the Sabine Pass liquefaction project would be designed and permitted for up to four modular LNG trains, each with a peak processing capacity of up to 0.7 Bcf/d of natural gas and an average liquefaction processing capacity of 3.5 mtpa. The initial project phase is anticipated to include two modular trains and the capacity to process 1.2 Bcf/d of pipeline quality natural gas.

Start of construction is subject to regulatory approvals and a final investment decision contingent upon Cheniere Partners obtaining satisfactory construction contracts and entering into long-term customer contracts sufficient to underpin financing of the project.

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