EIG commits $500m to proposed US gas pipeline

LNG project developer Cheniere has also applied for federal authorisation for its planned 200-mile gas pipeline.

EIG Global Energy Partners has committed $500 million to a natural gas pipeline project Cheniere Energy is planning to build from reserves in Oklahoma and Texas to export terminals along the US Gulf Coast.

EIG has provided financial backing for Houston-based Cheniere’s proposed 200-mile pipeline that will connect gas producers in the Anadarko Basin in western Oklahoma and northern Texas to LNG terminals along the Gulf Coast. With EIG’s commitment, Cheniere said it has filed the project for authorisation with the Federal Energy Regulatory Commission and is targeting approval for early 2018.

EIG, a DC-based firm investing in energy and energy infrastructure, and Cheniere’s own equity contributions are intended to ensure the project has funding that is expected to be required for its full completion. Energy giants Devon Energy Corporation, Marathon Oil Corporation and Gulfport Energy Corporation are supporting the project as well.

Credit Suisse acted as a financial advisor to Cheniere on the investment.

Wallace Henderson, EIG’s managing director, said the firm is pleased to extend its relationship with Cheniere, after the two connected in 2014 for a $1.5 billion purchase of Cheniere convertible notes used to fund the construction of the Corpus Christie Liquefaction Project in Texas.

In May, EIG had raised $2 billion for its Private Debt Fund, which launched in 2015 with a $2.5 billion target, according to Infrastructure Investor data. As of 31 March, the firm had $15.1 billion of assets under management.