Freeport LNG has secured a US$1bn loan with Westbourne Capital to finance the development of the fourth train at the Freeport LNG liquefaction plant project on Quintana Island (Freeport, Texas, US). This financing, combined with a contemplated bank facility, will cover the full capital requirement for Train 4, which will have a liquefaction capacity of 5 Mt/year (6.75 bcm/y). This announcement follows approvals from the Federal Energy Regulatory Commission (FERC) and the Department of Energy (DOE) for the terminal's expansion project.
In May 2019, Freeport LNG awarded KBR an engineering, procurement, construction, commissioning (EPCC) contract. The final investment decision (FID) is to be made within the next months. The fourth train could be commissioned as of 2023.
The Freeport LNG terminal initial project included three liquefaction trains of 5 Mt/year each (cumulated capacity of 15 Mt/year). The first train started production in August 2019. The second train is expected to enter into service in the first quarter of 2020, while the third train should be commercially launched during the second quarter of 2020. So far, the capacity from the first three liquefaction trains has already been contracted under several LNG supply agreements with several buyers such as Osaka Gas, JERA, BP, Toshiba and SK E&S LNG. The LNG project experienced several delays, most notably following heavy rain due to Hurricane Harvey in August 2017.
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