Temasek in $468m US energy deal

Singapore’s state investment firm Temasek and Asia private equity firm RRJ Capital have completed their fourth joint investment.

Temasek and RRJ Capital have jointly acquired a stake in Houston-based Cheniere Energy for $468 million, according to a statement from the energy company.

Cheniere, which engages in liquidified natural gas (LNG) business, intends to use the proceeds to buy $500 million of the $2 billion of equity securities to be issued by Cheniere Energy Partners LP, the investment vehicle of the LNG project, to help fund its Sabine Pass LNG liquefaction project in Louisiana.

“Additionally, Temasek, RRJ Capital and Cheniere are in discussions on a strategic partnership focused on developing LNG sales, marketing and trading relationships and opportunities in Asian markets,” Cheniere said in the statement.

The transaction marks the fourth joint investment that Temasek and RRJ made since RRJ’s inception in February last year. The two firms invested together in NASDAQ-listed Clean Energy Fuels and Texas-based oil exploratory company Frac Tech Services in 2011. In April this year, they again teamed up to invest around $600 million in Kunlun Energy, PetroChina’s downstream natural gas unit.

RRJ Capital is led by Richard Ong, former chief executive officer and co-founder of China’s Hopu Investment.  It had reportedly raised $2.3 billion for its debut fund and is planning fundraise for its second Asia-focused fund with a $4 billion target, according to media reports.  The firm has offices in in Singapore and Hong Kong.

The Blackstone Group earlier this year injected about $2 billion in Cheniere Energy Partners, providing equity for the development of the Sabine Pass project.