Press Release
Concerning the Acquisition of a Construction Permit for the Freeport LNG Project in the US
July 31, 2014
Chubu Electric Power Co.,Inc.
Osaka Gas Co., Ltd.
Chubu Electric Power Co., Inc. ("Chubu Electric," President: Akihisa Mizuno) and Osaka Gas Co., Ltd ("Osaka Gas," President: Hiroshi Ozaki) obtained a construction permit (=approval of the final environmental impact assessment report) on July 30, local time (Japan time, today), from the Federal Energy Regulatory Commission ("FERC") for the Freeport LNG Project in Texas, USA, planned for LNG procurement from 2018.
This approval means that all major licenses have been obtained, and both companies will promptly move forward with preparations for the final investment decision in the future.
In February of this year, Chubu Electric and Osaka Gas decided to each acquire 25% equity of the Freeport affiliate, which is the Series 1 construction entity that the two companies have entered into liquefaction tolling agreements for (hereinafter "Series 1 Liquefied Company"), through the final investment decision of the same series. Both companies being directly involved in the construction and operation of the project will ensure the establishment of the project, and expand LNG business.
By procuring LNG from this project and further facilitating destination-free LNG supply sources, Osaka Gas and Chubu Electric seek to diversify the sources of LNG supply and price indexes whereby achieving stable and competitive LNG procurement.
Overview of Freeport LNG Project
|
Place |
Freeport, Texas |
|
Commercial Operation |
2018 (planned) |
|
Liquefaction Capacity |
Approximately 4.4 million tonnes p.a. x 3 trains |
Overview of Chubu Electric Power Co., Inc.
|
Corporate Name |
Chubu Electric Power Co., Inc. |
|
Place(Headquarters) |
1 Higashi-shincho, Higashi-ku,Nagoya, Aichi 461-8680, Japan |
|
President & Director |
Akihisa Mizuno |
Overview of Osaka Gas Co., Ltd.
|
Corporate Name |
Osaka Gas Co., Ltd. |
|
Place(Headquarters) |
1-2,Hirano-cho,4-chome,Chuo-ku,Osaka-shi,Osaka 541-0046,Japan |
|
President & Director |
Hiroshi Ozaki |
Overview of Freeport
|
Corporate Name |
Freeport LNG Development, L.P. (FLNG) |
|
Place |
Houston, Texas |
|
Shareholders |
Freeport LNG Investments (27.5%), Zachry Hastings subsidiary (55%),Dow Chemical subsidiary (7.5%), Osaka Gas subsidiary (10%) |