Freeport LNG raises $1.025 billion for Train 4 expansion

Freeport LNG Development LP expects to take final investment decision in the “next several months” as the company and Westbourne Capital have executed definitive agreements to help finance a natural gas liquefaction train.

Freeport LNG Development LP expects to take final investment decision in the “next several months” as the company and Westbourne Capital have executed definitive agreements to help finance the natural gas liquefaction train, which will be integrated into its existing gas liquefaction and LNG export facility on Quintana Island near Freeport, Tex.

Westbourne and its coinvestors will exclusively provide a mezzanine loan of as much as $1.025 billion to a Freeport LNG subsidiary in support of the train, which is expected to add more than 5 million tonnes/year of LNG production to its existing project, increasing the total export capability of the four-train facility to more than 20 million tpy.

The financing, combined with a contemplated bank facility, will provide 100% of the capital required for Train 4, Freeport said in a press statement.

The agreement follows Freeport LNG’s receipt of its authorizations from the US Federal Energy Regulatory Commission and Department of Energy for the Train 4 project and its execution of a Train 4 fixed-price engineering, procurement, and construction contract with KBR Inc. (OGJ Online, May 17, 2019).

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