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Cases & Deals

March 1, 2022

King & Spalding advises Cheniere on its $5.4 billion EPC Agreement with Bechtel and project financing of $4 billion for the Corpus Christi Liquefaction Stage 3 LNG Project

King & Spalding advised Corpus Christi Liquefaction Stage III, LLC (CCL3), a subsidiary of Cheniere Energy, Inc. (Cheniere) (NYSE: LNG), in its $5.4 billion contract with Bechtel Energy Inc. (Bechtel) for the engineering, procurement, and construction (EPC) of the Corpus Christi Liquefaction Stage 3 LNG Project (the “Stage 3 Project”) located in San Patricio County, Texas. The Stage 3 Project consists of 7 liquefaction units, each having an aggregate nominal LNG production capacity of approximately 1.5 million metric tonnes per annum utilizing Chart Industries liquefaction technology. The transaction closed on March 1, 2022.

King & Spalding also advised CCL3 in connection with LNG sale and purchase agreements and other commercial arrangements underpinning the $4 billion project financing of the Stage 3 Project. CCL3 achieved financial close on June 15, 2022.

Subsequently, CCL3 issued a full notice to proceed and Final Investment Decision for the Stage 3 Project, which is only the second Final Investment Decision of a liquefaction facility in the U.S. since August 2019.

Cheniere is an energy infrastructure company primarily engaged in LNG-related businesses and is the largest producer of LNG in the United States and second largest in the world.  In addition to the Corpus Christi LNG terminal, Cheniere also owns the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, which includes 6 operational natural gas liquefaction trains for a total production capacity for Sabine Pass of approximately 30 mtpa of LNG. King & Spalding has represented Cheniere on all of their construction projects since the company’s inception in 2002.

The King & Spalding team advising Cheniere consisted of Scott Greer (HOU), Rob Garner (HOU), Jill McWhirter (HOU), David Lang (HOU), Kim Cagle (HOU), Martin Hunt (LON), Jim Bowe (WDC), Silvia Martin (HOU), Fernando Langa (HOU), Gregg Jacobson (ATL), Sean Sheehy (HOU) and Erin Mendez (HOU) advised on the transactions.