Osaka Gas and Chubu Electric acquire liquefaction capacity at Freeport LNG

Freeport LNG Expansion, L.P. has executed 20-year liquefaction tolling agreements with Osaka Gas Co., Ltd. (Osaka Gas) and Chubu Electric Power Co., Inc. 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.

Liquefaction capacity

The initial 3-train facility will be capable of liquefying approximately 13.2 million tpy of natural gas. Train 1 will have a liquefaction capacity of 4.4. million tpy of LNG. This deal will allow the two companies to export LNG from the US mainland

"We welcome the unparalleled LNG industry expertise and experience that Osaka Gas and Chubu Electric bring to the Freeport LNG project," said Michael S. Smith, Freeport LNG's Chief Executive Officer. "As two of the largest natural gas and electric utility service providers in Japan, having liquefaction tolling agreements with Osaka Gas and Chubu Electric provides the strong end-user credit support necessary to fully finance the initial train of the liquefaction project."

Trains 2 & 3

Trains 2 and 3 Freeport LNG are also under exclusive negotiations with respect to the second and third trains of the liquefaction project. Definitive agreements with respect to the second and third trains are expected to be completed before year-end. The new liquefaction facilities will be integrated into the existing regasification facilities and operated as an integrated plant.

Adapted from press release by Peter Farrell.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/01082012/freeport-lng-signs-liquefaction-toll-agreement-with-osaka-gas-and-chubu-electric/