Freeport LNG signs two tolling agreements for third LNG train (US)

Freeport LNG Expansion it has entered into two binding 20-year Liquefaction Tolling Agreements (LTAs) with Toshiba and with SK E&S LNG for a base quantity of 2.2 Mt/year each, commencing upon completion of construction of the third train of Freeport LNG’s proposed natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas (US). The proposed Freeport LNG liquefaction project will consist of three 4.4 Mt/year liquefaction trains; the Final Investment Decision for the third train is expected by late 2014. Freeport LNG expects to receive FERC approval to commence construction of the first three liquefaction trains in the first quarter of 2014. The first train is anticipated to commence operations 42-48 months from start of construction, with the second train in operation 6 to 9 months after the first train. Construction of the third train is anticipated to begin in late 2014, and to commence operations 6 to 9 months after the second train.

Freeport LNG has previously announced the execution of LTAs with Osaka Gas and Chubu Electric, each for 2.2 Mt/year (second train), and with BP, for 4.4 Mt/year. The Osaka Gas and Chubu Electric LTAs commence upon completion of construction of the initial liquefaction train, and the BP LTA commences upon completion of construction of the second liquefaction train.