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

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

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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

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

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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.

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Mission Accomplished for Energy Transfer

Mission Accomplished for Energy Transfer

Reese Energy Consulting today is following the latest news from Dallas-based Energy Transfer, which just announced completion of its on-budget, ahead-of-schedule Lone Star Express Pipeline Expansion. The new 352-mile line will flow NGLs from Winkler Co., Texas, and connect to the company’s 532-mile Lone Star Express bound for Energy Transfer’s monster Mont Belvieu storage and fractionation complex along the Gulf Coast. The expansion will add another 400 MBPD of capacity to the system’s existing 507 MBPD of mixed NGLs transported from processing plants in the Permian and Delaware. As part of the Lone Star project, Energy Transfer plans to construct an eighth fractionator at Mont Belvieu, which will increase total plant fractionation capacity to more than 1 MMBPD. Completion is expected next summer.

Energy Transfer

Energy Transfer Partners is a company engaged in natural gas and propane pipeline transport. It is organized in Delaware and headquartered in Dallas, Texas. It was founded in 1995 by Ray Davis and Kelcy Warren, who remains Chairman and CEO.

www.energytransfer.com

What do you think?

Learn more about Reese Energy Consulting and our range of midstream services in the nation’s most prolific basins at www.ReeseEnergyConsulting.com.

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