Freeport Signs First Deals for LNG Exports, Expects More by Year-End
Freeport LNG Expansion said that it signed 20-year liquefaction tolling agreements with Osaka Gas Co. and Chubu Electric Power Co. covering 100% of the liquefaction capacity of the first train of Freeport LNG's proposed natural gas liquefaction and LNG loading facility near Freeport, Texas. The Japanese utilities acquired rights to the 4.4 mtpa production capacity of the first train at Freeport over an initial 20-year term. Freeport LNG said it's in exclusive negotiations for the second and third trains of the liquefaction project, and definitive agreements for their full capacity are expected to be completed before year-end.
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Freeport LNG said it anticipates receiving all regulatory approvals by mid-2013, and to begin construction in the third quarter of 2013. The first train is anticipated to commence operations approximately 48 months from start of construction, with each subsequent train in operation 6-9 months after the previous train, it said.