Chadbourne Represents Lenders on US$1.2 Billion Working Capital Financing for Sabine Pass Liquefaction’s LNG Export Project

Global Business September 14, 2015

Chadbourne represented the Senior Facility Agent, the Senior Issuing Banks and the Senior Lenders on a US$1.2 billion financing to provide working capital and letter of credit facilities for the Sabine Pass Liquefaction LNG export project at the Sabine Pass LNG Terminal, located in Cameron Parish, Louisiana.


The financing enables the borrower, Sabine Pass Liquefaction, LLC, to tap the working capital facility for revolving loans to support working capital requirements of the Project for the purchase, transportation and storage of natural gas, as well as other general working capital purposes, and to issue letters of credit in support of the company's obligations to counterparties in relation to the purchase, transportation and storage of natural gas.  In addition, the company will be able to request letters of credit in support of any debt service reserve requirements under its previously executed project financings. The financing closed on September 4, 2015.


Sabine Pass Liquefaction, LLC is an indirect wholly-owned subsidiary of Cheniere Energy Partners L.P. (NYSE-MKT: CQP). Sabine Pass Liquefaction LLC expects to construct up to six liquefaction trains, which are in various stages of development. Each liquefaction train is expected to have a nominal production capacity of approximately 4.5 mtpa. According to the company's filing with FERC, the overall project completion percentage of Trains 1 and 2 is approximately 93.6 percent, and the overall project completion percentage of Trains 3 and 4 is approximately 70.5 percent, according to the company's filings with FERC.  Cheniere has indicated that first LNG production is expected as early as the end of 2015.


Chadbourne has represented the various lenders to Sabine Pass Liquefaction, LLC since the initial Trains 1-2 financing that closed in 2012, and through the subsequent Trains 1-4 financing that closed in 2013 and the Trains 1-5 financing that recently closed on June 30, 2015. "It has been amazing to be a part of the Sabine Pass LNG project, the first LNG export project in the United States, and a groundbreaking marquee project on a global scale," noted Noam Ayali and Benjamin Koenigsberg, the two Chadbourne partners leading the team on the Sabine Pass financings.


The Chadbourne team working on the project included partners Noam Ayali and Benjamin Koenigsberg, counsels Scott Bank, Sue Cowell, Christy Rivera and Monika Szymanski, and associates Rebecca Abou-Chedid, Ginger Collier, Ekin Inal, Kevin Prokup, Matthew Harris, Diego Gallegos, and paralegal Tom Scott.