Case -  Chenieres LNG Liquefaction Strategy Pushing the Boundaries of the Project Finance Debt Market

 

1. What are the main factors that will influence the development of the global LNG market over the next 10 years? How could such risks and uncertainties be mitigated for an LNG project finance creditor?

2. How does Cheniere's chosen project finance debt strategy for Sabine Pass Liquefaction affect Société Générale, its lead project finance bank, from a business, financial and regulatory perspective?

3. What are the potential drawbacks of Cheniere's current financing approach for the Sabine Pass LNG liquefaction project? What other markets or financing options might be available to the company?

4. You are the high yield bond portfolio manager at XYZ Asset Management Company. Would you purchase Cheniere's latest May 2014 Sabine Pass Liquefaction bond issue? Discuss all of the fundamental and technical reasons for your decision