Cheniere Energy Partners Holdings reported a net loss of $54,000 for the quarter and year ended Dec. 31, 2013.
In a release dated Feb. 21, the Company said results included general and administrative expenses.
The Company was formed by Cheniere Energy, Inc. to hold its limited partner interests in Cheniere Energy Partners, L.P., a publicly traded limited partnership. The only business consists of owning Cheniere Partners' limited partner units, along with cash or other property that we receive as distributions in respect of such units and, accordingly, results of operations and financial condition are dependent on the performance of Cheniere Partners. We own common units, Class B units and subordinated units representing an aggregate of approximately 55.9 percent of the outstanding Cheniere Partners units as of Dec. 31, 2013. The Company's account for its investment in Cheniere Partners using the equity method of accounting, and investment currently has a zero balance due to suspended losses.
Initial Public Offering
On Dec. 12, 2013, the Company completed its IPO under which it sold 36,000,000 common shares to the public at a price of $20.00 per share. The Company used the net proceeds of approximately $665.0 million from its IPO to repay intercompany indebtedness and payables to Cheniere of approximately $272.0 million and distributed the remaining proceeds to Cheniere.
Cheniere Partners is developing and constructing natural gas liquefaction facilities at the Sabine Pass LNG terminal adjacent to the existing regasification facilities through its subsidiary, Sabine Pass Liquefaction. Cheniere Partners also owns the 94-mile Creole Trail Pipeline through its subsidiary, Cheniere Creole Trail Pipeline, which interconnects the Sabine Pass LNG terminal with interstate pipelines.
Cheniere Partners continues to make progress on its Liquefaction Project, which is being developed for up to six natural gas liquefaction trains, each with a nominal production capacity of approximately 4.5 mtpa. Federal Energy Regulatory Commission and Department of Energy approvals for Trains 1 through 4 have been received, and all required regulatory applications with the FERC and DOE to develop Trains 5 and 6 have been filed.
The Trains are in various stages of development.
-Construction on Trains 1 and 2 began in August 2012, and as of Jan. 31, the overall project for Trains 1 and 2 was approximately 57.1 percent complete, which is ahead of the contractual schedule. Based on Cheniere Partners' current construction schedule, Cheniere Partners anticipates that Train 1 will produce LNG by late 2015.
-Construction on Trains 3 and 4 began in May 2013, and as of Jan. 31, the overall project for Trains 3 and 4 was approximately 21.6 percent complete. To date, soil stabilization has been completed and pile driving, the next critical path item, is underway. Cheniere Partners expects Trains 3 and 4 to become operational in late 2016 and 2017, respectively.
-For Trains 5 and 6, two LNG sale and purchase agreements have been completed for approximately 3.75 mtpa, in aggregate, of LNG volumes that commence with the date of first commercial delivery of Train 5. In September 2013, the complete application with the FERC was filed. To date, authorization has been received from the DOE to export 503 Bcf of LNG volumes from Trains 5 and 6 to FTA countries. Non-FTA authorization is pending.
When Cheniere Partners makes cash distributions to us with respect to our Cheniere Partners units, we will pay dividends to our shareholders consisting of the cash that we receive from Cheniere Partners, less income taxes and reserves established by our Board of Directors.
On Feb. 11, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.017 per common share representing limited liability company interests in Cheniere Partners Holdings. The dividend will be payable on March 3, to shareholders of record as of the close of business on Feb. 21.
Cheniere Partners Holdings owns a 55.9 percent limited partner interest in Cheniere Partners. Cheniere Partners Holdings' only business consists of owning Cheniere Partners units. Cheniere Partners owns and operates liquefied natural gas regasification facilities and, adjacent to these facilities, currently has natural gas liquefaction facilities under construction.
((Comments on this story may be sent to firstname.lastname@example.org))