Press Release
Osaka Gas and Chubu Electric execute liquefaction tolling agreements with FLNG Liquefaction, LLC
July 31, 2012
Osaka Gas Co., Ltd.
Chubu Electric Power Co.,Inc.
Osaka Gas Co., Ltd. ("Osaka Gas") and Chubu Electric Power Co., Inc. ("Chubu Electric") today announced that they have executed binding liquefaction tolling agreements with FLNG Liquefaction, LLC ("FLIQ"), an affiliate of Freeport LNG Expansion, L.P. ("FLEX" and, together with FLIQ, "Freeport LNG")
Freeport LNG plans to construct a liquefaction facility consisting of three trains each with a capacity of approximately 4.4 million tons of LNG per annum (mtpa) at the existing Freeport LNG regasification terminal. After gaining regulatory approvals, namely a long-term authorization from the Department of Energy to export LNG to non-FTA countries and a construction permit from the Federal Energy Regulatory Commission, Freeport LNG will start construction of the liquefaction facility towards its launch of commercial operation in 2017.
Pursuant to the agreements, Osaka Gas and Chubu Electric will each acquire a 2.2mtpa production capacity of the first train at Freeport and will be able to secure the U.S. origin LNG produced from natural gas (mainly shale gas) procured by themselves in the United States.
The two companies believe that acquisition of liquefaction capacity will contribute to diversifying the sources of LNG and help to achieve their stable and economical procurement.
Notes
Notes1
Overview
1. Overview of Freeport liquefaction project
|
Location |
Freeport, Texas |
|---|---|
|
Start of Commercial operation |
2017 (planned) |
|
Liquefaction capacity |
3 trains each with capacity of approx. 4.4 mtpa |
|
Export Authorization |
Applied for export to non-FTA countries(2nd in order of application) |
2. Overview of Freeport LNG
Freeport LNG Expansion, L.P. is a wholly owned subsidiary of Freeport LNG Development, L.P., which owns and operates an existing LNG regasification terminal located near Freeport, Texas. The terminal started commercial operation in June 2008. Freeport LNG Development, L.P. has four limited partners: (1) Freeport LNG Investments, LLLP, an entity owned by Michael S. Smith; (2) ZHA FLNG Purchaser, LLC, a wholly owned subsidiary of Zachry American Infrastructure, LLC; (3) Texas LNG Holdings, LLC, a wholly owned subsidiary of The Dow Chemical Company; and (4) Turbo LNG, LLC, a wholly owned subsidiary of Osaka Gas Co., Ltd.