GIP infrastructure fund sells stake of Freeport LNG, Energy News, ET EnergyWorld



New Delhi: Global Infrastructure Partners has put up for sale its 26% stake in the limited partnership of Freeport LNG, the second largest liquefied natural gas (LNG) export facility in the United States, sources familiar with the matter said on Friday. .

The infrastructure investor is working with an investment bank to solicit interest from buyers, the sources say.

The price that GIP seeks for its participation could not be learned. It paid $ 850 million for the stake in 2014, before the Freeport LNG site began exporting gas and generating revenue.

There is no guarantee that a sale will take place, and GIP could ultimately retain the stake, warned the sources, who requested anonymity because the information is private.

GIP declined to comment when contacted by Reuters and Freeport LNG did not respond to a request for comment.

Stakes in large energy projects often change hands once operational, as early stage investors who have supported the program – often when there is still considerable risk of project completion – realize profits and costs. other investors attracted by regular returns step in.

Last year, Brookfield Asset Management bought a stake in Cheniere Energy Inc’s limited partnership from Blackstone Group Inc. This came after a unit of the Canadian investment firm paid north of $ 2 billion. dollars in 2019 for a 25% stake in Cove Point, an LNG terminal in Maryland owned primarily by Dominion Energy Inc.

Originally designed as an import terminal, Freeport LNG was converted into an export facility once the U.S. shale gas boom took off. Located on the island of Quintana off the coast of Texas, exports began in 2019, with its three production units providing 15 million metric tonnes per year of liquefaction capacity. A fourth unit is planned, according to the Freeport LNG website.

Freeport LNG Development LP is majority owned by founder Michael Smith. Osaka Gas Co is also an investor.



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