Houston Business Journal by Shaina Zucker, Reporter
Date: Tuesday, August 21, 2012, 8:19am CDT - Last Modified: Tuesday, August 21, 2012, 8:31am CDT
The sovereign wealth funds of China and Singapore have invested a combined $1 billion in a Cheniere Energy Partners plant that will export cheap liquefied natural gas to Asia, Reuters reports.
China Investment Corp. and the Government of Singapore Investment Corp. have invested a combined $1 billion in Houston-based Cheniere Energy Partners LP's (NYSE: CQP) planned liquefied natural gas export plant, Reuters reports.
Cheniere has been seeking funds to start construction for the ideal plant to ship LNG and has already signed long-term commercial contracts to supply gas to BG Group Plc, gasNatural Fenosa, GAIL Limited and Korea Gas Corp, Reuters reports.
Asian buyers have been eagerly watching for U.S. LNG development opportunities in hopes of obtaining cheap gas, and buyers from top LNG importer Japan, South Korea and India have already signed up for U.S. exports.
Cheniere Energy is building its $5.6 billion project in Sabine Pass, La. The project, expected to be ready by 2015, will be the U.S.’s first LNG export plant since 1969.
The technology to obtain the LNG, known as hydraulic fracturing, releases natural gas trapped in tight layered rock formations by injecting high-pressure water, sand and chemicals.