Chubu Electric, Osaka Gas Invest $600 Mn Each in Freeport LNG

Japanese utilities Chubu Electric Power and Osaka Gas have invested $600 million each in the Freeport LNG’s proposed natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas. 

The investment by two Japanese firms will provide equity required for the development of Freeport's first train facility (Train One).

The facility involves the development of three liquefaction plants, or trains.

“Investment capital will be drawn down over Train One's planned 45-month construction period. The balance of Train One's capital needs is expected to be sourced from a consortium of lenders comprised of a Japanese government financial agency and commercial banks,” Freeport LNG said in a statement.

In July 2012, Freeport LNG executed 20-year use-or-pay liquefaction tolling agreements with Osaka Gas and Chubu Electric equivalent to the minimum guaranteed production capacity of Train One.

Freeport LNG has received all authorization required from the U.S. Department of Energy (DOE) to export the entire LNG production volume of the initial three trains of the liquefaction project. The minimum production capacity of the three liquefaction trains has been fully contracted under use-or-pay liquefaction tolling agreements with Osaka Gas, Chubu Electric, BP Energy Company, Toshiba Corp. and SK E&S LNG, LLC.

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