Freeport LNG secures financing for Train One

Freeport LNG’s unit FLNG Liquefaction has entered into definitive agreements for the debt financing of approximately $3.85 billion of capital required for the development of the first train facility.

Train One is a part of Freeport LNG’s proposed natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas.

The Train One debt financing is being provided by Japan Bank for International Cooperation (JBIC) and the following six commercial banks: The Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corporation, Mizuho Bank, Sumitomo Mitsui Trust Bank, Mitsubishi UFJ Trust and Banking Corporation, and ING Bank N.V., Tokyo Branch. The portion of the loans financed by the commercial banks is insured by Nippon Export and Investment Insurance (NEXI). Pursuant to their previously announced agreement, Osaka Gas and Chubu Electric Power are investing approximately $1.2 billion for the development of Train One.

Michael S. Smith, Chief Executive Officer, Freeport LNG said, “We look forward to commencing construction of the initial two trains of the liquefaction project in the coming weeks and beginning commercial exports in 2018.”

Freeport LNG expects to also soon announce the execution by its subsidiary, FLNG Liquefaction 2, of definitive agreements for the debt financing needs for its second train facility (Train Two). These agreements, together with the Train One financing agreements and the previously announced $1.3 billion equity commitment to Train Two by IFM Investors, will position Freeport LNG to close initial funding and commence construction of the initial two trains of the Freeport LNG liquefaction facility immediately upon receipt of orders from the U.S. Federal Energy Regulatory Commission denying pending rehearing requests of its July 30, 2014 approval of the Freeport LNG project and from the U.S. Department of Energy granting final authorization of LNG exports from the facility.

Financial close and commencement of construction on Freeport LNG’s third train facility is expected to occur in the first half of 2015.

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Press Release; Image: Freeport LNG