Freeport Lng Tolling Agreement
Osaka Gas: Approximately 2.32 MTPA (20-year liquefaction toll contract) “We welcome SK as a customer for the Freeport LNG liquefaction project. SK`s strong market of 3.5 million South Korean customers adds another highly experienced participant in the LNG industry to our already strong customer base. With today`s separate announcement of the completion of an LTA with Toshiba Corporation, Freeport LNG is able to complete financing and begin construction of the third train in late 2014,” said Michael S. Smith, President and Chief Executive Officer of Freeport LNG. “The sk agreement provides a unique opportunity for the United States to support our key ally and free trade partner, South Korea, SK`s largest market for LNG obtained under the Freeport project,” continued Smith. Freeport LNG has acquired cb&I, Inc. and Zachry Industrial, Inc. responsible for the initial engineering and design of the first three trains of the liquefaction project. Macquarie Capital is acting as financial advisor to Freeport LNG on the proposed financing of the first two trains of the project. King & Spalding advised Freeport LNG on its agreement with BP.
Liquefaction project documentation, including regulatory applications and related documents, is available on the Freeport LNG website at www.freeportlng.com. For more information, please visit our website at www.freeportlng.com or contact:Lisa SingletonBrunswick Group214-254-3790 We have contracts for the supply of basic LNG to Osaka Gas, JERA (an alliance between Tokyo Electric and Chubu Electric), BP Energy, Total S.A. and SK E&S: a total of 13.4 mtpa of generating capacity under utility agreements or 20-year liquefaction fees. The EPC contractor for the project anticipates that the three production units will begin business operations sequentially between Q3 2019 and Q2 2020. FLIQ1 made its final investment decision for Train1 in October 2014. The project will produce LNG for export from natural gas purchased in the United States. The project operator is Freeport LNG Development, L.P. Osaka Gas and JERA will each raise approximately 2.32 MTPA of LNG based on the liquefaction toll agreements with FLIQ1.
Freeport LNG has received approval from the U.S. Department of Energy (DOE) to export the entire LNG production volume of the first two trains of the liquefaction project to any country that has or will develop the capacity to import LNG in the future and with which trade is permitted. Freeport LNG`s request to export up to two additional trains with production volumes to countries with which the U.S. does not have free trade agreements (non-FTAs) remains pending with the DOE and is currently the second in the queue set up by the DOE to review and process pending non-FTA export applications. Freeport LNG Expansion, L.P. is a wholly owned subsidiary of Freeport LNG Development, L.P., which owns and operates an existing LNG regasification terminal near Freeport, Texas. The terminal began commercial operations in June 2008. Freeport LNG Development, L.P.
has four limited partners: (1) Freeport LNG Investments, LLLP, a company owned by Michael S.M. Smith; (2) ZHA FLNG Buyer, LLC, a wholly-owned subsidiary of Zachry American Infrastructure, LLC; (3) Texas LNG Holdings, LLC, a wholly-owned subsidiary of The Dow Chemical Company; and (4) Turbo LNG, LLC, a wholly-owned subsidiary of Osaka Gas Co., Ltd. ・Headquarters: 4-1-2 Hiranomachi, Chuo-ku, Osaka, Japan Note: We do not provide technical support for the development or debugging of script download processes. With the final investment decision for the third train by the end of 2014, Freeport LNG will then receive DOE approval, which would cover the entire production volume of the first two liquefaction trains and allow Freeport LNG to start exporting to non-FTA countries immediately after construction is completed. The DOE should respond to initial comments on the DOE`s 2012 LNG Export Study immediately after the deadline to respond to the FIRST comments on the DOE`s 2012 LNG Export Study. February 2013 will begin reviewing the pending non-FTA export application for Freeport LNG. The second Freeport LNG DOE application, which covers up to two additional trains with production volume, is the fourth in the order established by the DOE for the review and processing of pending non-FTA export applications. Freeport LNG is expected to receive FERC approval in the first quarter of 2014 to begin construction of the first three liquefaction trains. The first train is expected to enter service 42 to 48 months after construction begins, while the second train is in service six to nine months after the first train. Construction of the third train is expected to begin at the end of 2014 and enter service six to nine months after the second train. The Freeport LNG project (the “Project”) in Texas, USA, began commercial operation of its first liquefaction train on December 8, 2019.
Osaka Gas Co., Ltd. (“Osaka Gas”) and JERA Co., Inc. (“JERA”) are participating in the Project through FLNG Liquefaction, LLC (“FLIQ1”). Enter the opportunity – the shale gas revolution. Current estimates suggest that the United States has had sufficient reserves of natural gas for more than a hundred years. That`s where we come in: the place where know-how and perseverance meet opportunities. “BP is very excited to partner with Freeport LNG, Chubu Electric and Osaka Gas for LNG exports to the U.S. Gulf Coast. We believe this is an attractive value proposition and a complementary position to BP`s existing portfolio of Part 3 equity and LNG contracts. We look forward to serving our LNG customers with even more flexibility compared to our natural gas portfolio,” said Paul Reed, Chief Executive Officer of BP Integrated Supply & Trading. Gas liquefaction and LNG exports: After gaining some of the best customers in the industry and structuring groundbreaking project financing transactions, we began building three liquefaction trains on the island of Quintana in November 2014. At this site and at the onshore gas pre-treatment plant located three miles away, we have made every effort to maintain the highest safety standards during construction while minimizing potential impacts on surrounding communities and the environment.
“The combination of BP, one of the world`s leading international oil and gas companies, with our existing customers Osaka Gas and Chubu Electric, two of Japan`s largest suppliers of natural gas and electricity, provides us with extremely strong counterparties with which we can seek financing,” continued Smith. “Now that the first two liquefaction trains of the project have been fully contracted, we intend to approach the financing markets shortly so that we can begin construction of the first two-train plant once we have received FERC approval.” World LNG Database provides a comprehensive set of data on LNG markets. The service provides detailed information on existing and planned liquefaction and regasification plants. It also includes LNG transport worldwide, LNG contracts, time series for regasification and liquefaction capacity, LNG flows and LNG prices for all market players. . Led by a team with hundreds of years of combined experience in the energy sector, Freeport LNG is becoming one of the leading LNG suppliers to global markets. . To ensure that our site works well for all users, the SEC monitors the frequency of requests for content SEC.gov to ensure that automated searches do not interfere with the ability of others to access content SEC.gov. We reserve the right to block IP addresses that make excessive requests. Current policies limit users to a total of no more than 10 requests per second, regardless of the number of computers used to send requests. ・Shareholder: Freeport LNG Expansion, subsidiary L.P.
(50%). Osaka Gas Subsidiary (25%), JERA Subsidiary (25%) Building a plant that will produce enough LNG to power a city of 2.5 million people for a full day is a massive and expensive undertaking. However, the benefits and considerable economic impact of the project are equally impressive. Approximately 30,000 new permanent jobs are expected to be created in the U.S. to support the exploration and production of feed gas supplied to our plant. The full economic benefits of exporting the 15 mtpa of LNG contracted from the United States are estimated at between $5.5 billion and $8 billion per year. In July 2012, Freeport exported LTAs with Osaka Gas Co., Ltd. and Chubu Electric Power Co. for a total of 4.4 mtpa. The Osaka Gas and Chubu Electric LTAs will begin after the completion of the construction of the first liquefaction train. Pioneer for the future of U.S.
gas exports to the world Freeport LNG plans to begin construction of the first three liquefaction trains in the third quarter of 2013 and begin construction of the first two trains in the fourth quarter of 2013. The first train is expected to enter service approximately 48 months after the start of construction, while the second train is expected to operate six to nine months after the first train. The commercialization of the capacity of the third train is expected to be completed before the end of the year, funding is to be completed and construction of the third train is expected to begin at the end of 2014. The commencement of construction of the Freeport LNG liquefaction project is subject to receipt of regulatory approvals and freeport LNG`s final investment decision. Key regulatory approvals include approval by the Federal Energy Regulatory Commission (FERC) to begin construction and approval by the Department of Energy (DOE) to export LNG to countries without a free trade agreement (non-FTA). .
