RRJ, Temasek invest $468m in US natural gas company

The investors are in talks with the Houston-based firm about forming a strategic partnership to develop LNG sales, marketing and trading relationships and opportunities across Asia.

Cheniere will use the put the proceeds towards the purchase of $500 million of a $2 billion equity securities issue by Cheniere Energy Partners, a master limited partnership in which it holds an 88.8% stake. The partnership controls the Sabine Pass LNG project in Louisiana, America's first LNG export plant, and needs capital to support its development.

As part of the transaction, RRJ and Temasek will reportedly take a combined 19.8% interest in the partnership.

"We look forward to working with both Cheniere and RRJ Capital and others to tap into opportunities in Asia which are driven by the energy demand of growing middle income populations and continued urbanization in the decades ahead," said Greg Lanham, managing director of investments at Temasek.

"We strongly support Cheniere and their vision to become a world leader in the global LNG industry, including the key Asian LNG market," added Richard Ong, RRJ's chairman and CEO.

Last month, RRJ and Temasek teamed up once again to purchase almost half of the shares in a $1.34 billion offering by Kunlun Energy. The company will use proceeds from the sale to develop its LNG business and to explore future expansion and acquisition opportunities.

RRJ has now deployed about 60% of its $2 billion debut vehicle, which launched in February of last year. The private equity firm is said to be planning to raise a new $5 billion fund in the second half of this year. The fund would be split evenly between traditional private-equity assets and more liquid investments such as PIPE deals.

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• Topics
• Expansion
• Industrials
• Infrastructure
• Temasek Holdings
• RRJ Capital