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Success stories

03/11/2015

Cheniere Energy: Supporting a key player in the LNG industry

SG CIB advised Cheniere Energy Inc. (Cheniere) in the development of their Corpus Christi Liquefaction (CCL) project, a three train Liquefied Natural Gas (LNG) export facility. The financing represents the largest project financing ever executed in the bank market (i.e. without support from ECAs and/or capital markets)

When Cheniere was seeking to raise US$11.5 billion to fund their new LNG export terminal in Corpus Christi, Texas, it trusted in SG CIB’s strong track record as a global leader of LNG project financings.  

The project is a significant milestone in the LNG sector, as the proceeds will fund the development of one of the pioneering LNG liquefaction facilities in the US.  This project is the highest profile world-scale transaction to arise from the changes in the US’s natural gas market dynamics.

A LONG-TERM RELATIONSHIP

Societe Generale’ has developed a strong, on-going partnership with Cheniere dating back to 2005.  Since 2010, Societe Generale’ has acted as Sole Financial Advisor to Cheniere for a total of four successful LNG liquefaction financings.  This landmark project changes the international dynamics of LNG via its geographically diverse portfolio of offtakers and reinforces Cheniere’s position as the preeminent exporter of US LNG.

SG's particular in-depth experience and understanding of the complexities involved in financing LNG facilities has been crucial to the success of our projects.
Michael Wortley, CFO, Cheniere Energy

“We are pleased to have SG on board again as our financial advisor in this exciting era of US natural gas production, said Michael Wortley, CFO, Cheniere Energy, Inc. “Their particular in-depth experience and understanding of the complexities involved in financing LNG facilities has been crucial to the success of our projects.  Thanks in large part to SG’s experience and skills, we successfully financed our Sabine Pass LNG terminal, the first LNG terminal in the contiguous US, as well as our latest project, a greenfield liquefaction facility in Corpus Christi, Texas,” 

 

CHANGING THE DYNAMICS OF THE LNG INDUSTRY

Over the past 10 years, SG CIB has pioneered a number of innovative LNG financing structures including linking LNG sales against a US natural gas index rather than oil, which was the traditional practice. 

“This transaction is a highlight of my career,” said Roberto Simon, SG CIB’s Head of Natural Resources & Infrastructure, Americas. “Our work with Cheniere has played a small part in changing US energy policy and changing the dynamics of the LNG industry globally.” 

In addition to acting as sole financial advisor on the US$11.5 billion senior secured loan, Societe Generale also served the client in 10 different roles including joint book runner, co-syndication agent and deal contingent interest rate hedge provider.