Comes a (Huge) New Investor for Cheniere

Comes a (Huge) New Investor for Cheniere

Houston-based Cheniere has grabbed its share of headlines recently and the latest is a doozy. First came the announcement earlier this month that Abu Dhabi Investment Authority (ADIA) had scooped up a 5.1% stake in the company valued at $615 million. The deal made ADIA Cheniere’s third-largest investor right behind Icahn Associates Holding with 8.25%. But not so fast, fellas. There’s a new kid in town and this one’s a chunk. After musing last year that it would “entertain serious offers” for a 41.2% stake in the LNG heavyweight, private equity firm Blackstone Energy Partners has officially handed over the car keys to Brookfield Asset Management. The position is valued at $7.8 billion. Blackstone invested a mere $1.5 billion in Cheniere eight years ago. Somewhere, Blackstone’s institutional investors must be weeping with joy while Brookfield bets big on a return to pre-COVID demand for LNG exports.

 

Cheniere Energy

Cheniere Energy, Inc. is a liquefied natural gas company headquartered in Houston, Texas. In February 2016 it became the first US company to export liquefied natural gas. As of 2018 it is a Fortune 500 company.

www.cheniere.com

What do you think?

Learn more about Reese Energy Consulting and our natural gas and LNG expertise at www.ReeseEnergyConsulting.com.

You Might Also Like…

Opportunities to the Max

Opportunities to the Max

Houston-based Max Midstream has every intention to transform the Port of Calhoun into a major crude oil export center. With $1 billion worth of plans in motion, Max recently has acquired the Seahawk Pipeline and Terminal from private equity firm Oaktree Capital with a big, bold idea to offer shippers a more economical, less congested alternative to export sites at Houston/Galveston and Corpus Christi. The newly acquired pipeline connects the Kinder Morgan Crude and Condensate Interconnect in Edna, Texas, where Max also operates a crude oil terminal, to the Seahawk Terminal. Following construction of a new pipeline and added interconnects, Seahawk will flow up to 20 million barrels of Permian and Eagle Ford crude each month to a completely revitalized terminal system that includes its Edna site by 2023. Storage will increase to 9 million Bbls at Edna and 6 million Bbls at Seahawk. Max also is investing $360 million to widen and deepen the Port to accommodate Aframax and Suezmax ships. Phase 1 of the project is slated for completion in November.

Max Midstream

Max Midstream bridges the gap between upstream and downstream with strategic partnerships in the global refining sector. From the wellhead to Gulf, they deliver consistent quality crude oil quickly and efficiently, saving both time and money. Their high-capacity network of pipelines, storage and terminal facilities offer a seamless, one-stop solution for premium midstream operations.

maxmidstream.com

What do you think?

Learn more about Reese Energy Consulting and our range of oil and gas midstream services at www.ReeseEnergyConsulting.com.

You Might Also Like…

Gimme an L…Gimme an N…Gimme a G…

Gimme an L…Gimme an N…Gimme a G…

Despite the deep plunge in demand for U.S. LNG exports, Cheniere Energy has attracted a deep-pocketed shareholder with all eyes fixed on a looming recovery. Abu Dhabi Investment Authority this week snatched up a 5.1% stake in Cheniere valued at $615 million, making it the company’s third-largest investor right behind Icahn Associates Holding with 8.25%, or nearly 21 million shares. This comes as a grand and welcomed demonstration of optimism for the nation’s LNG export industry after falling off a cliff in the Spring and Summer with decreased production more than half its all-time high of 9.8 BCFD in late March. But according to the EIA, U.S. LNG exports are poised for a big bounce by late November and return to pre-COVID levels averaging more than 9 BCFD from December through at least next February. Cheniere is the nation’s largest LNG producer and second largest in the world, with terminals in Cameron Parish, La., and Corpus Christi, Texas, that output more than 22.5 million tons of LNG each year.

 

Cheniere Energy

Cheniere Energy, Inc. is a liquefied natural gas company headquartered in Houston, Texas. In February 2016 it became the first US company to export liquefied natural gas. As of 2018 it is a Fortune 500 company.

www.cheniere.com

What do you think?

Learn more about Reese Energy Consulting and our LNG services at www.ReeseEnergyConsulting.com.

You Might Also Like…

An Open Season, Potential Interest Buy in Cheniere, and the Ballad of the SPR Motel

An Open Season, Potential Interest Buy in Cheniere, and the Ballad of the SPR Motel

RMR features the latest high-point news to keep you to up to date with midstream activities happening in the basins and shale plays that matter to you most.

Red Butte Pipeline Launches Open Season

Dallas-based Silver Creek Midstream has announced an open season for shipper commitments to make improvements on an eight-mile section of the company’s 495-mile Red Butte crude oil pipeline in Wyo. Deadline for bids is September 7. Red Butte is the largest transmission line to extend from the Big Horn and Wind River basins to Casper, Wyo. Upon completion of upgrades and refurbishments to the proposed section, the pipeline will offer 5,000 BPD of capacity. The Red Butte system includes two delivery points, multiple truck-loading stations, and more than 800,000 Bbls of storage.

PE Firms in Talks to Buy/Sell Large Interest in Cheniere

Private equity firm Blackstone began shopping its 41% interest in the nation’s largest LNG operator two months ago after investing $1.5 billion in Cheniere in 2012. Negotiations now appear to be on the table between Blackstone and alternative asset manager Brookfield for a stake in Cheniere valued at $7.8 billion. The company’s market value stands at about $18.9 billion. Amid demand destruction that has seen LNG exports nose-dive from a record-breaking 8.1 BCFD in January to 3.1 BCFD in July, and EIA projections of a serious recovery by the first of 2021, we’d love to see the calculus from each firm on this deal.

Producer Storage at the SPR Begins to Lighten

The nation’s Strategic Petroleum Reserve was never meant to be an extended-stay motel for producers’ crude oil supplies. Between the April oil glut and a near fever-pitch panic for storage wherever it could be found, the SPR offered up capacity in its underground salt caverns as a temporary sanctuary for U.S. oil whose price had free fallen into an abyss. While the Trump Administration advocated to purchase 77 MMBbls, Congress would have none of it. Instead, nine oil companies took advantage of the opportunity to store 23 MMBbls of oil in exchange for cheap rent and an eviction date of March 31, 2021. With the price of oil now rebounding, Exxon and the U.S. leg of Total this month have reclaimed 2.2 MMBbls of their crude. Take a load off, Fannie.

Was this article helpful? Let us know what you think.

You Might Also Like…