Freeport LNG Expansion LP received final approvals for its proposed natural gas liquefaction and LNG export facility on Quintana Island near Freeport, Texas. On Nov. 13, the Federal Energy Regulatory Commission (FERC) denied pending rehearing requests, and on Nov. 14, Freeport received a final authorization from the U.S. Department of Energy (DOE) to export to Non-Free Trade Agreement countries.
Freeport LNG received conditional authorization from the DOE to export the entire contracted LNG production volume of the first three trains of the liquefaction project. Earlier in the year, Freeport LNG received FERC approval for the initial three-train liquefaction project, and in October, FERC granted Freeport LNG authorization to begin construction. After receipt of this order from FERC denying rehearing requests and a final export authorization from DOE, Freeport expects to close on financing and start construction on the first two trains in November. Financing and construction on the third train is expected in second-quarter 2015.
Freeport LNG contracted with a joint venture between CB&I Inc. and Zachry Industrial Inc. to build the first two trains of the project. They are expected to begin operations 45 and 50 months from start of construction, respectively, with the third train expected to commence oeprations about six months after the second train. Each liquefaction train has a nameplate design capacity of 4.64 million tonnes per annum (mtpa). About 13.2 mtpa of the production capacity of the three trains has been contracted under use-or-pay liquefaction tolling agreements with Osaka Gas, Chubu Electric, BP Energy Co., Toshiba Corp. and SK E&S LNG LLC.
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