Cheniere Announces Positive Final Investment Decision on the Corpus Christi Stage 3 Liquefaction Project
June 22 2022 - 7:30AM
Business Wire
Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE
American: LNG) announced today that its Board of Directors has made
a positive Financial Investment Decision (“FID”) with respect to
the 10+ million tonnes per annum of LNG Corpus Christi Stage 3
Liquefaction Project (“CCL Stage 3”) and has issued full notice to
proceed to Bechtel Energy Inc. (“Bechtel”) to continue construction
on CCL Stage 3, which began earlier this year under limited notice
to proceed.
“Reaching FID on Corpus Christi Stage 3 represents an important
milestone for Cheniere as we move forward on this significant
growth project, which will strengthen our market-leading LNG
infrastructure platform, provide much-needed volumes to the global
LNG market by the end of 2025, and create long-term value for our
stakeholders,” said Jack Fusco, Cheniere’s President and Chief
Executive Officer. “I would like to recognize the Cheniere team,
our financial partners, our EPC partner Bechtel and our long-term
customers for their demonstrated teamwork, commitment and
execution, all of which were critical elements in the successful
commercialization and financing of CCL Stage 3. CCL Stage 3 is
supported by a truly global portfolio of long-term customers and
reflects the call for investment in natural gas infrastructure
around the world to support environmental priorities and long-term
energy security.”
On June 15, 2022, Cheniere’s wholly-owned subsidiary, Cheniere
Corpus Christi Holdings, LLC (“CCH”) closed on an amended and
restated approximately $4 billion Senior Secured Term Loan due 2029
(“CCH 2029 Term Loan”), as well as an amended, extended and upsized
$1.5 billion Working Capital Facility due 2027. In conjunction with
the financing, Cheniere contributed its wholly-owned equity
interests in Corpus Christi Liquefaction Stage III, LLC (“CCL Stage
III, LLC”) to CCH, and merged CCL Stage III, LLC into Corpus
Christi Liquefaction, LLC (“CCL”), a subsidiary of CCH, with CCL
continuing as the surviving company. Borrowings under the CCH 2029
Term Loan are being used to fund approximately half of the total
expected cost to develop, construct, and place into service CCL
Stage 3, the associated pipeline expansion and other infrastructure
at or near the project, and for related business purposes. The
remaining costs are expected to be funded from Cheniere.
About Cheniere
Cheniere Energy, Inc. is the leading producer and exporter of
liquefied natural gas (LNG) in the United States, reliably
providing a clean, secure, and affordable solution to the growing
global need for natural gas. Cheniere is a full-service LNG
provider, with capabilities that include gas procurement and
transportation, liquefaction, vessel chartering, and LNG delivery.
Cheniere has one of the largest liquefaction platforms in the
world, consisting of the Sabine Pass and Corpus Christi
liquefaction facilities on the U.S. Gulf Coast, with total
production capacity of approximately 45 mtpa of LNG in operation
and an additional 10+ mtpa of expected production capacity under
construction. Cheniere is also pursuing liquefaction expansion
opportunities and other projects along the LNG value chain.
Cheniere is headquartered in Houston, Texas, and has additional
offices in London, Singapore, Beijing, Tokyo, and Washington,
D.C.
For additional information, please refer to the Cheniere website
at www.cheniere.com and Quarterly Report on Form 10-Q for the
quarter ended March 31, 2022, filed with the Securities and
Exchange Commission.
Forward-Looking Statements
This press release contains certain statements that may include
“forward-looking statements” within the meanings of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical or present facts or conditions, included herein are
“forward-looking statements.” Included among “forward-looking
statements” are, among other things, (i) statements regarding
Cheniere’s financial and operational guidance, business strategy,
plans and objectives, including the development, construction and
operation of liquefaction facilities, (ii) statements regarding
regulatory authorization and approval expectations, (iii)
statements expressing beliefs and expectations regarding the
development of Cheniere’s LNG terminal and pipeline businesses,
including liquefaction facilities, (iv) statements regarding the
business operations and prospects of third-parties, (v) statements
regarding potential financing arrangements, (vi) statements
regarding future discussions and entry into contracts, (vii)
statements relating to Cheniere’s capital deployment, including
intent, ability, extent, and timing of capital expenditures, debt
repayment, dividends, and share repurchases, and (viii) statements
regarding the COVID-19 pandemic and its impact on our business and
operating results. Although Cheniere believes that the expectations
reflected in these forward-looking statements are reasonable, they
do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. Cheniere’s actual results
could differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors,
including those discussed in Cheniere’s periodic reports that are
filed with and available from the Securities and Exchange
Commission. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Other than as required under the securities laws,
Cheniere does not assume a duty to update these forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20220621005946/en/
Cheniere Energy, Inc.
Investors Randy Bhatia,
713-375-5479 Frances Smith, 713-375-5753
Media Relations Eben
Burnham-Snyder, 713-375-5764 Phil West, 713-375-5586
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