Cheniere Increases and Prices Secondary Offering (LNG, CQP, BX)

Cheniere and its subsidiary, Cheniere Energy Partners LP (AMEX: CQP), have received approvals to convert the Sabine Pass liquefied natural gas receiving terminal into an export terminal. Cheniere Energy Partners will build the $10 billion liquefaction facilities, and construction could start in less than a month.

But today’s secondary stock offering is being used “for general corporate purposes, including repayment of indebtedness.” Two weeks ago Cheniere Energy Partners announced a $2 billion investment from Blackstone Group LP (NYSE: BX) to get construction going on the first production facilities.

Investors are not happy about the pricing of the secondary offering and shares of Cheniere Energy Inc. are down about -5.7% at $15.10, after closing at $16.01 last night. The stock’s 52-week range is $3.17-$17.07.