Houston-based LNG exporter Cheniere Energy has reached a final investment decision on the construction of the sixth liquefaction train at the Sabine Pass LNG facility in Cameron Parish, Louisiana.
The FID follows the company’s approval of a comprehensive capital allocation framework that will see Cheniere prioritize reinvestment of cash flows to grow its LNG platform.
Cheniere expects to generate over $9 billion of available cash through the first half of 2024.
“The capital allocation framework we announced today prioritizes continued investment in our LNG platform through new high-return growth projects, beginning with Sabine Pass Train 6, on which we have made a positive FID and have issued full notice to proceed to Bechtel,” said Jack Fusco, Cheniere’s president and CEO.
To fund a portion of the construction of Train 6 and a third LNG berth and required supporting infrastructure at the Sabine Pass liquefaction project, Cheniere Partners has entered into 5-year, $1.5 billion senior secured credit facilities with 29 banks and financial institutions in a transaction that closed on May 29, 2019.
The facilities include a $750 million delayed draw term loan and a $750 million revolving credit facility.
Cheniere further noted it has increased the run-rate production guidance to 4.7 – 5.0 mtpa per train, up from 4.4 – 4.9 mtpa per train.
The increase in run-rate production is based on the impact of production optimization, maintenance optimization, and debottlenecking projects at both the Sabine Pass and the Corpus Christi LNG projects.