Freeport LNG Signs 20-year Liquefaction Tolling Agreement With Toshiba Corporation

    Freeport LNG Signs 20-year Liquefaction Tolling Agreement With Toshiba

- Marketing of third liquefaction train complete

- Final investment decision for third train expected by end of 2014

PR Newswire

HOUSTON, Sept. 9, 2013

HOUSTON, Sept. 9, 2013 /PRNewswire/ --Freeport LNG Expansion, L.P. (Freeport
LNG) today announced that it has entered into a binding 20-year Liquefaction
Tolling Agreement (LTA) with Toshiba Corporation (Toshiba) for a base quantity
of 2.2 million tons per annum (mtpa), commencing upon completion of
construction of the third train of Freeport LNG's proposed natural gas
liquefaction and LNG loading facility on Quintana Island near Freeport, Texas.

"We welcome Toshiba as a customer to the Freeport LNG liquefaction project.
We are excited to add one of the largest and most innovative global companies
to our existing suite of liquefaction customers. With our separate
announcement today of entry into an LTA with SK E&S LNG, LLC (SK), Freeport
LNG is positioned to close financing and commence construction of the third
train in late 2014," said Michael S. Smith, Chief Executive Officer, Freeport
LNG. "The Toshiba agreement provides a unique opportunity for the United
States to support the energy security of our close ally with long-term LNG
supplies," continued Smith.

"Toshiba is happy to work with Freeport LNG and other off-take participants on
this prestigious LNG export project. We hope our participation will contribute
to the value improvement at our client companies and efficient generation of
energy in Japan," said Yasuharu Igarashi, the Corporate Executive Vice
President of Toshiba Corporation and the President and CEO of Toshiba
Corporation Power Systems Company.

Freeport LNG has previously announced the execution of LTAs with Osaka Gas
Co., Ltd. (Osaka Gas) and Chubu Electric Power Co. (Chubu Electric), each for
2.2 mtpa, and with BP Energy Company (BP), for 4.4 mtpa. The Osaka Gas and
Chubu Electric LTAs commence upon completion of construction of the initial
liquefaction train, and the BP LTA commences upon completion of construction
of the second liquefaction train. It is anticipated that actual LNG
production realized from each of the liquefaction trains will exceed their 4.4
mtpa design basis by more than 0.6 mtpa. To the extent this excess production
volume is realized by the Freeport LNG project, the Toshiba LTA includes
certain provisions for the volumes committed under the Toshiba LTA to be
increased to include substantially all of such excess volumes in respect of
the third liquefaction train.

"Adding Toshiba and SK to our existing customer base of Osaka Gas and Chubu
Electric, two of the largest natural gas and electric utility service
providers in Japan, and BP, one of the world's leading international oil and
gas companies, further enhances the strength of our project and the
best-in-class suite of counterparties to support financing," continued Smith.
"We intend to close financing and commence construction on the initial two
liquefaction trains in early 2014 upon receipt of regulatory approvals.
Financing and commencement of construction on the third liquefaction train is
expected in the second half of 2014."

Project Update

Commencement of construction of Freeport LNG's liquefaction project is subject
to receipt of authorization to commence construction from the U.S. Federal
Energy Regulatory Commission (FERC) and final investment decision by Freeport

Freeport LNG has received authorization from the U.S. Department of Energy
(DOE) to export the entire LNG production volume of the initial two trains of
the liquefaction project to any country that has, or in the future develops,
the capacity to import LNG and with which trade is permissible. Freeport LNG's
application to export up to two additional trains of production volume to
countries with which the United States does not have free trade agreements
(non-FTA) remains pending with the DOE, and is currently second in the queue
established by the DOE for review and processing of pending non-FTA export

Freeport LNG expects to receive FERC approval to commence construction of the
first three liquefaction trains in the first quarter of 2014. The first train
is anticipated to commence operations 42-48 months from start of construction,
with the second train in operation six to nine months after the first train.
Construction of the third train is anticipated to begin in late-2014, and to
commence operations six to nine months after the second train.

Freeport LNG has contracted with CB&I, Inc. and Zachry Industrial, Inc. to
conduct the front end engineering and design for the initial three trains of
the liquefaction project. Macquarie Capital and Credit Suisse are serving as
Freeport LNG's financial advisors with respect to the proposed financing for
the project. King & Spalding advised Freeport LNG on its agreement with
Toshiba. Documentation pertaining to the liquefaction project, including
regulatory applications and related materials, is available on Freeport LNG's
website at

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 Delaware limited liability company; (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.,

For further information, please visit our website at or

Lisa Singleton
Brunswick Group


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