SHARE
Trains 1 through 3 at Freeport LNG facility. Image courtesy of Freeport LNG.

The Freeport LNG export facility expansion won final government approval last week, clearing the way for construction to begin.

The Federal Energy Regulatory Commission (FERC) green lighted the project on November 13 after the agency denied pending rehearing requests.

The facility, located on Quintana Island near Freeport, Texas, also revived final authorization from the Department of Energy on November 14 to export LNG to non-free trade agreement countries.

Freeport anticipates closing on financing and beginning construction on the first two trains later this month.

Financing and commencement of construction on the third train is expected in the second quarter 2015.

The first two trains are expected to start operations about four years from start of construction, with the third train projected to be online six months after the second train starts operations.

Each liquefaction train has a nameplate design capacity of 4.64 million tonnes per year.

Freeport has contracted about 13.2 million tonnes per year of the production capacity from the three liquefaction trains to Japan-based Osaka Gas, Japan-based Chubu Electric, BP Energy Company, Japan-based Toshiba and South Korea-based SK E&S LNG under use-or-pay liquefaction tolling agreements.

The $14 billion project will expand an existing terminal and build three new LNG trains to provide nominal export capacity of about 13.2 million metric tonnes of LNG per year.

The terminal expansion will enable the liquefaction and export of about 2.0 billion cubic feet per day of gas.

The terminal will still be able to import LNG into the domestic market.

Freeport LNG Expansion is a wholly owned subsidiary of Houston-based Freeport LNG Development, owner and operator of an existing LNG regasification terminal located near Freeport, Texas.

Freeport partners include Freeport LNG Investments, FLNGI Option Holdco, ZHA FLNG Purchaser, Dow Chemical subsidiary Texas LNG Holdings and Osaka Gas subsidiary Turbo LNG.