Gas Liquefaction

Gas Liquefaction

Building the Future of U.S. LNG Exports with Some of the Industry's Best Customers

Entrepreneurship and Business Acumen

In the early 2000s, Freeport LNG was founded through entrepreneurial spirit and keen business sense. When the concept of our organization as an LNG import facility began to take shape in 2002, we did not expect that, years later, a 180-degree shift in U.S. natural gas supply would position us to lead the future of U.S. LNG exports as well. We are quick to rise to the challenge. Despite an abrupt market turn, our entrepreneurial, yet conservative business model allowed us to maintain economic stability while many in the industry struggled.

Enter opportunity—the shale gas revolution. Current estimates indicate that the U.S. has sufficient natural gas supplies for over one hundred years. That’s where we come in: the place where know-how and perseverance meet opportunity.

After all three liquefaction trains are running, our daily LNG output will be enough to power and light a metropolitan area the size of San Antonio for an entire day.

The combination of ample reserves and low prices create excellent conditions for the U.S. gas market to become a source for LNG exports.

Given the market’s reversal, Freeport LNG has launched its liquefaction project to add over 15 mtpa (equivalent to approximately 2.2 Bcf of gas per day) of liquefaction capacity to its Quintana Island facilities. The terminal is now becoming the largest point of demand for natural gas in Texas. 

Led by a team with hundreds of years of combined experience in the energy industry, Freeport LNG will become a leading supplier of LNG to world markets. 

 

Pioneering the Future of U.S. Gas Exports to the World

Gas Liquefaction and LNG Exports: After attracting some of the industry's best customers and structuring landmark project-finance transactions, we began construction of three liquefaction trains on Quintana Island in November 2014. At this site, and at the gas pretreatment facility site three miles away on the mainland, we have been doing our utmost to uphold the highest safety standards during construction while minimizing potential impacts on surrounding communities and the environment.

 

World-Class Customers

We have contracts to supply baseload LNG to Osaka Gas, JERA (an alliance between Tokyo Electric and Chubu Electric), BP Energy, Toshiba and SK E&S: a total of 13.4 mtpa of production capacity under 20-year use-or-pay liquefaction tolling agreements. The project's three production units are scheduled to commence operations sequentially between Q4 2018 and Q3 2019.

 

What 2.2 Bcf of LNG Equivalent per Day Means

Building a facility that will produce enough LNG to supply energy for a city of 2.5 million people for an entire day is a massive and expensive undertaking. However, the project’s benefits and far-reaching economic impacts are equally impressive. Approximately 30,000 new permanent jobs are expected to be created across the U.S. to support the exploration and production of feed gas supplied to our facility. The complete economic benefits of exporting the contracted 13.4 mtpa of LNG from the U.S. are estimated between $5 billion and $7 billion annually.

 

Location, Infrastructure and Technology Advantages

 

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