Freeport LNG Receives DOE Approval To Export LNG To Non-Free Trade Agreement
- 20-year approval to export up to 511 billion cubic feet (BCF) per year
- Export approval sufficient for initial two trains of liquefaction project
- Final investment decision on track for fourth quarter 2013
HOUSTON, May 17, 2013
HOUSTON, May 17, 2013 /PRNewswire/ --Freeport LNG Expansion, L.P. (Freeport
LNG) today announced that it had received authorization from the U.S.
Department of Energy (DOE) to export domestically produced liquefied natural
gas (LNG) to any country that has, or in the future develops, the capacity to
import LNG and with which trade is permissible. This order supplements the
DOE authorization received by Freeport LNG in February 2011 authorizing LNG
exports to Free Trade Agreement (FTA) countries, and concludes a key
regulatory milestone for the Freeport LNG natural gas liquefaction and LNG
Under the DOE's order, Freeport LNG received authority to export on its own
behalf, or as agent for others, up to the equivalent of 511BCF per year of
domestically produced LNG. The authorization is for a term of 20 years, and
commences the earlier of the date of first export or seven years from the date
"Receipt of DOE non-FTA approval completes a key development milestone for the
initial phase of the Freeport LNG liquefaction project," said Michael S.
Smith, Chief Executive Officer of Freeport LNG. "We applaud the DOE on its
thorough and balanced analysis of the public benefits of LNG exports to the
United States. The overwhelming evidence in favor of LNG exports generated
during the DOE's two-and-a-half year review, definitively confirms that the
DOE should act swiftly to approve additional pending LNG export applications."
Mr. Smith added, "LNG exports will play a vital role in supporting sustained
development of U.S. natural gas supplies to meet growing domestic energy
needs, while delivering significant job creation, economic stimulus, balance
of trade improvement and national security benefits to the United States.
Freeport LNG looks forward to helping to deliver these benefits to our
In July 2012, Freeport LNG executed liquefaction tolling agreements (LTAs)
with Osaka Gas Co., Ltd. (Osaka Gas) and Chubu Electric Power Co. (Chubu) for
the volume equivalent of the initial train of the liquefaction project. In
February 2013, Freeport LNG executed an LTA with BP Energy Company (BP Energy)
for the volume equivalent of the second train of the liquefaction project.
Freeport LNG has contracted with CB&I, Inc. and Zachry Industrial, Inc. to
conduct the front end engineering and design for the liquefaction project.
Macquarie Capital and Credit Suisse are serving as Freeport LNG's financial
advisors with respect to the proposed financing for the first two trains of
the project. Brownstein Hyatt Farber & Schreck is advising Freeport LNG on
DOE matters. Documentation pertaining to the liquefaction project, including
regulatory applications and related materials, is available on Freeport LNG's
website at www.freeportlng.com.
About 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.
For further information, please visit our website at www.freeportlng.com or
SOURCE Freeport LNG
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