LNG

Our work in the LNG sector is a key part of our Power, Energy & Utilities practice. We have been involved in a wide range of LNG liquefaction, regas, shipping and infrastructure projects. Currently, we are advising clients on a range of market factors presenting challenges and opportunities, including the massive capital requirements for the emerging LNG markets in places such as Yemen, Peru and Nigeria and Equatorial Guinea; the push to expand regas capacity on the U.S. Gulf Coast, in Mexico, the Northwest and Canada; and expanding gas transportation and storage infrastructure to accommodate LNG imports and expanded Rockies natural gas production.

Recent representative deals include:

North American Project Bond “Deal of the Year” 2007 (USA) – Lea Power Partners  – Project Finance Magazine
Milbank represented the lenders Calyon and Lehman Brothers in the $327 million senior secured bond issued by Lea Power Partners. Proceeds of the financing will be used to develop and build a 604 MW natural gas-fired combined-cycle power plant in Hobbs, New Mexico. The equity provider to, and owner of, the project is ArcLight’s Energy Partners Fund III; the developer is Genova Partners. The project is unusual in its use of gray market generating equipment that has been salvaged from mothballed projects and the stocks of other sponsors.

Alinda Investments LLC (USA)
We represented Alinda Investments LLC in GE Energy and Alinda’s purchase of Kinder Morgan Inc’s U.S. retail natural gas division for $710 million plus working capital. Kinder Morgan distributes natural gas to more than 260,000 customers through nearly 12,000 miles of pipeline.

North American Refinancing “Deal of the Year” 2006 – Sabine Pass, USA  – Project Finance Magazine
We recently represented the lenders on the $1.5 billion credit facility for Cheniere Energy’s Sabine Pass LNG project, the largest LNG financing in the USA to date.