Freeport LNG has entered into a binding 20-year Liquefaction Tolling Agreement (LTA) with BP for 4.4 Mt/year, equivalent to the production capacity of the second train of Freeport LNG’s proposed natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas. The LTA with BP will commence upon completion of construction of the second liquefaction train.
In July 2012, Freeport LNG executed LTAs with Osaka Gas and Chubu Electric for a total of 4.4 Mt/year. The Osaka Gas and Chubu Electric LTAs commence upon completion of construction of the initial liquefaction train.
Freeport LNG expects to receive FERC approval to commence construction of the first three liquefaction trains in the third quarter of 2013, and to begin construction of the first two trains in the fourth quarter of 2013. The first train is anticipated to commence operations approximately 48 months from start of construction, with the second train in operation six to nine months after the first train. Marketing of the capacity of the third train is anticipated to be completed before year end, with financing to be closed and construction to begin on the third train as early as late 2014.
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