FLNG Liquefaction 3 LLC, a unit of Freeport LNG Expansion LP, has closed on the $4.56 billion in financing needed to start construction of the third train of FLNG’s gas liquefaction and LNG loading facility on Quintana Island near Freeport, Tex.
The construction cost for the combined three-train project is expected to be $12.5 billion, including owner’s costs and interest during construction. An additional $3 billion in funds were raised for refinancing and acquisition costs associated with the existing LNG import facility, letters of credit facilities, and a special contingency fund.
With closing on this financing, Freeport LNG has completed all milestones and issued a full notice to proceed to CB&I Inc., Zachry Industrial Inc., and Chiyoda International Corp. to construct the project’s third train.
Full three-train operation is expected by third-quarter 2019. LNG production from the first liquefaction train is expected in early 2018, with commercial operation of the first train expected to commence by third-quarter 2018.
Each liquefaction train has a capacity of more than 5 million tonnes/year. About 13.4 million tpy of the production capacity of the three trains has been contracted under use-or-pay liquefaction tolling agreements with Osaka Gas Co. Ltd., Chubu Electric Power Co. Inc., BP Energy Co., Toshiba Corp., and SK E&S LNG LLC.
In November 2014, FLNG received final approvals for its proposed facility from the US Federal Energy Regulatory Commission and the US Department of Energy (OGJ Online, Nov. 14, 2014).
