JP Morgan has entered into a partnership with Cheniere Energy Inc. Under the two-year deal, the two companies will jointly look for buying opportunities, with JP Morgan providing the financial muscle and client base, and Cheniere providing the LNG expertise and assets.
“We believe this arrangement allows us to source LNG with the support of a strong balance sheet and to utilise our capacity at Sabine Pass and our network of clients in the most effective way,” said Davis Thames, President of Cheniere Marketing LLC.
JP Morgan now have import rights for up to 2 billion ft3/d of LNG at Cheniere’s Sabine Pass terminal in Louisiana. The deal will allow JP Morgan access to the LNG market and it will also give Cheniere the ability to buy more LNG. The Sabine Pass terminal is able to send out 4 billion ft3/d and can store up to 16 billion ft3. JP Morgan now join a number of other banks who have invested in the LNG market including Morgan Stanley, Citi Group and Barclays Capital.
“This agreement complements our existing global gas business and further diversifies the offerings we can deliver across regions,” said Paul Polosi, head of Global Power, Gas, Coal and emissions at JP Morgan.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/03042010/jp_morgan_enters_lng_market/