HOUSTON, Feb. 11, 2011 /PRNewswire/ -- Cheniere Energy
Partners, L.P. (NYSE Amex: CQP) ("Cheniere Partners") announced
today that its subsidiary, Sabine Pass Liquefaction, LLC
("Sabine"), has signed memoranda
of understanding ("MOUs") with Empresa Generadora de Electricidad
Haina, SA ("EGE Haina") and Compania de Electricidad de San Pedro
de Macoris ("CESPM"), companies managed by Basic Energy, (hereafter
referred to as Basic Energy), under which Basic Energy intends to
purchase up to 0.6 million tonnes per annum ("mtpa") of liquefied
natural gas ("LNG") through arrangements with Sabine. These companies operate in the
Dominican Republic, which is a
free trade nation where Sabine has
already received approval from the Department of Energy to export
LNG.
Under the MOUs, Basic Energy and Sabine have agreed to proceed with
negotiations of definitive sale and purchase agreements ("SPAs")
whereby Basic Energy would purchase LNG for receipt at its
designated receiving terminal(s) on a delivered ex-ship basis
("DES"). These agreements would be subject to certain
conditions precedent, including but not limited to the receipt by
each party of requisite internal approvals, Sabine's receipt of regulatory approvals and
making a final investment decision to construct the liquefaction
facilities.
EGE Haina is the largest single generator formed out of the
privatization of the Dominican
Republic power sector in 1999. CESPM is the largest
IPP which was completed in 2002 to supply the power needs of a
growing economy. Both companies are substantially operated by
Basic Energy. Their combined portfolio includes over 880 MWs
of installed capacity throughout the country consisting of dual
fuel, coal and natural gas plants. Basic Energy is focused on
reducing electricity production costs in the country by securing
competitively priced U.S. LNG which will be based on a NYMEX
index.
"We are pleased to announce the start of negotiations of
definitive sale and purchase agreements with Basic Energy and are
excited to have the opportunity to provide LNG to our neighbors in
the Caribbean," said Charif Souki, Chairman and CEO of Cheniere
Partners. "Basic Energy operates several power plants in the
Dominican Republic and is seeking
to optimize its power portfolio by focusing on natural gas as an
alternative, more economical and environmentally friendly fuel
source. They are a great example of the emerging markets we
are targeting for LNG sales, where natural gas is being sought out
by power producers to replace fuel oil for dual fuel plants in
order to reduce power generating costs and reduce emissions.
If the gas is sourced based on an indexation to Henry Hub
prices, this can also result in significant cost savings for these
power producers."
Mr. Souki further commented, "The Dominican Republic is one of several countries
in the Caribbean focused on
environmental initiatives and participating in the Energy and
Climate Partnership of the Americas, an organization chaired by the
U.S. Secretary of Energy, established to promote and implement
sustainable energy policies and programs for energy efficiency,
renewables and energy infrastructure. We are pleased to
participate in this effort."
Cheniere Partners owns 100 percent of the Sabine Pass LNG
terminal located in western Cameron
Parish, Louisiana on the Sabine Pass Channel. The terminal
has sendout capacity of 4.0 Bcf/d and storage capacity of 16.9
Bcfe. Additional information about Cheniere Partners may be
found on its website: www.cheniereenergypartners.com.
As currently contemplated, the Sabine
Pass liquefaction project would be designed and permitted
for up to four modular LNG trains, each with a peak processing
capacity of up to approximately 0.7 Bcf/d of natural gas and an
average liquefaction processing capacity of approximately 3.5 mtpa.
The initial project phase is anticipated to include two
modular trains and the capacity to process on average approximately
1.2 Bcf/d of pipeline quality natural gas. We intend to enter
into contracts for at least 0.5 Bcf/d of natural gas liquefaction
capacity per train. Commencement of construction is subject to
regulatory approvals and a final investment decision contingent
upon Cheniere Partners obtaining satisfactory construction
contracts and entering into long-term customer contracts sufficient
to underpin financing of the project. We believe that the time and
cost required to develop the project would be materially lessened
by Sabine Pass LNG's existing large acreage and infrastructure. We
anticipate LNG export could commence as early as 2015.
Basic Energy is an operator of generation, distribution and
energy marketing in the Dominican
Republic, where it is the leader in the private power
generation sector. Basic Energy's managed assets are Compania
de Electricidad de Bayahibe ("CEB"), Consorcio Energetico Punta
Cana - Macao ("CEPM"), CESPM and
EGE Haina. The plants are located in the towns of Bavaro, Bayahibe,
San Pedro de Macoris, Haina, Barahona, Pedernales and Puerto Plata. Today, Basic Energy plants
have an installed capacity of approximately 1,000 MW. With almost
20 years of experience in the Dominican electricity market, with a
staff consisting of more than 600 professionals, Basic Energy
maintains a continuous relationship with international
organizations for the financing of new projects, using cutting-edge
technology, promotes the use of alternative sources for the
generation of clean energy and, through its companies nationwide,
develops programs for social commitment related to the environment
and surrounding communities. Basic Energy is a pioneer developer of
wind energy in the country and it will put into operation the first
wind farm of the Dominican
Republic during the second half of 2011. This, the
largest wind farm in the Caribbean, will have an initial capacity of 33
MW and is expected to grow to 100 MW. Basic Energy is
committed to the success and development of the energy sector in
the Dominican Republic. For
additional information, please go to the following websites:
www.cespm.com.do or www.egehaina.com.
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 facts, included herein are "forward-looking statements."
Included among "forward-looking statements" are, among other
things, (i) statements regarding Cheniere Partners' business
strategy, plans and objectives, including the construction and
operation of liquefaction facilities, (ii) statements regarding our
expectations regarding regulatory authorizations and approvals,
(iii) statements expressing beliefs and expectations regarding the
development of Cheniere Partners' LNG terminal and liquefaction
business and (iv) statements regarding the business operations and
prospects of third parties. Although Cheniere Partners
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 Partners' 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
Partners' 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 Partners does not assume a duty to update
these forward-looking statements.
SOURCE Cheniere Energy Partners, L.P.