Cheniere Energy: Who Will Lend Them The Money?
By Paulo Santos:Cheniere Energy (LNG)(CQP) just got approval to turn its Sabine Pass terminal into a LNG export facility. This will take a $10 billion investment. The greatest doubt here is: Who will lend it the money? Why do I ask? Cheniere did what was probably the greatest blunder of the last decade in the natural gas (UNG) market: in the very midst of a temporary boom in natural gas prices that took natural gas $15/mmBTU in December 2005, Cheniere decided to build a facility made for importing natural gas - the Sabine Pass terminal. After years of hard work and monstrous investments - Sabine Pass finally opened … in April 2008. Luckily, natural gas prices were again on a mini-boom, pricing at that time around $11/mmBTU. But we were already in the middle of the natural gas shale boom, and since then natural gas prices did little but fall, and thenComplete Story »
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