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Freeport LNG in deals for first export train

by on July 31, 2012 10:22 am GMT
 

Osaka Gas
and Chubu Electric Power have acquired the rights to the 4.4 million
tonnes-per-annum output of the first of the plant’s proposed three trains under
a 20-year tolling agreement.

Further
similar deals are now under negotiation that could see the capacity of trains
two and three being fully subscribed by the end of this year, paving the way
for construction to start at the Freeport, Texas site, according to the
Freeport LNG consortium.

The initial
three-train facility, with total capacity of 13.2 million tpa, will be integrated
into an existing regasification plant with construction expected to start in
the third quarter of 2013, subject to regulatory approvals being given.

The first
train is expected to come online about two years after construction start with
each subsequent train coming  into
operation six to nine months after the previous train.

Freeport
LNG chief executive Michael Smith said the two Japanese utilities would provide
“the strong end-user credit support necessary to fully finance the initial
train”.

A joint venture of Chicago
Bridge & Iron and Zachry Construction has won a contract to engineer,
design and build the liquefaction facility.