Blackstone Group announced a deal yesterday in which it will invest $2 billion in Cheniere Energy’s Sabine Pass LNG terminal. The deal opens the way for big arbitrage bets for those who take positions buying natural gas produced in the United States and selling it overseas. Four shippers have signed deals with Cheniere for capacity at the terminal:

Marketwatch posted the following press release in January:

Cheniere Partners owns 100 percent of the Sabine Pass LNG receiving terminal located on the Sabine Pass Channel in western Cameron Parish, Louisiana. The Sabine Pass terminal has regasification and send-out capacity of 4.0 billion cubic feet per day (Bcf/d) and storage capacity of 16.9 billion cubic feet equivalent (Bcfe). Cheniere Partners is developing a project to add liquefaction and export capabilities to the existing infrastructure at the Sabine Pass LNG terminal.

As currently contemplated, the Sabine Pass Liquefaction project (“Liquefaction Project”) is being designed and permitted for up to four modular LNG trains, each with a nominal capacity of approximately 4.5 mtpa. The Liquefaction Project is expected to be constructed in phases, with each LNG train commencing operations approximately six to nine months after the previous train. The first phase will include two liquefaction trains. In November 2011, Sabine Liquefaction entered into a lump sum turnkey contract for the engineering, procurement and construction of the first phase of the project with Bechtel Oil, Gas and Chemicals, Inc.

Sabine Liquefaction has also entered into two long-term customer sale and purchase agreements for 7.7 mtpa of LNG volumes, which are expected to underpin the financing of the first two trains. The customers are BG Gulf Coast LNG, LLC (formerly British Gas) (“BG”) for 4.2 mtpa under the Amended and Restated SPA and Gas Natural Fenosa (Spain) for 3.5 mtpa. Commencement of construction for the first phase is subject, but not limited to, regulatory approvals and Cheniere Partners making a final investment decision.

For the second phase of the Liquefaction Project, Cheniere has contracted SPAs with KOGAS (Korea) for 3.5 mtpa, GAIL (India) Ltd. for 3.5 mtpa and BG for an additional 1.3 mtpa of LNG volumes under the Amended and Restated SPA. Commencement of construction for the second phase is subject, but not limited to, entering into an EPC contract, regulatory approvals and Cheniere Partners making a final investment decision. Cheniere Partners has placed documentation pertaining to the Liquefaction Project, including the applications and supporting studies, on its website located at http://www.cheniereenergypartners.com . Read the full press release here.

Note that all participants are foreign companies who have the profit motive to capture the price differential between the US and overseas markets.