Freeport LNG has secured the final part of financing for its $12.5bn liquefied natural gas export terminal project in Texas, US.
The company has closed on $4.56bn in debt financing commitments for the third train. Most of the debt will come from a syndicate of 27 commercial banks.
Freeport LNG chief executive officer Michael Smith said: “We are excited to achieve this next great milestone in the advancement of the Freeport LNG liquefaction project.”
“We are excited to achieve this next great milestone in the advancement of the Freeport LNG liquefaction project.”
The company issued a full notice to proceed to CB&I, Zachry Industrial, and Chiyoda International to construct the third train.
The first two trains are currently under construction, and are expected to start operations by September 2018 and February 2019, respectively.
The third train is anticipated to enter service by August 2019. Each liquefaction train has a capacity of more than five million tonnes per annum (mtpa).
Each of the three liquefaction trains will use a propane precooled mixed refrigerant process, developed by Air Products and Chemicals, to produce a nominal 4.4mtpa of LNG.
Companies that have agreed to purchase gas from the project include Osaka Gas, Chubu Electric Power, BP Energy Company, Toshiba and SK E&S LNG.
Smith said: “Exports from the Freeport LNG project offer substantial geopolitical benefits as well, providing secure energy supplies to our key allies around the world and resulting in more than a 1% reduction in the US trade deficit.”
At peak construction, the project is expected to generate more than 5,000 jobs. Once operational, around 300 full-time workers will be employed at the terminal.
