The fourth liquefaction train will increase the capacity of the Freeport LNG export project at Quintana Island in Freeport to more than 20mtpa
The Freeport LNG export project with four trains will have an export capacity of more than 20mtpa (Credit: Freeport LNG Development, L.P)
Freeport LNG Development has secured financing of up to $1.025bn (£830m) from Westbourne Capital for the fourth liquefaction train of the Freeport LNG export project in Texas.
Under the definitive agreements signed by the parties, Westbourne and its co-investors will provide the financing in the form of a mezzanine loan to a subsidiary of a Freeport LNG.
The financing along with a contemplated bank facility will cover 100% of the capital required for the fourth natural gas liquefaction train of the Freeport LNG export project, said the company.
Westbourne Capital executive director and partner George Batsakis said: “We are very pleased to extend our investment relationship with this world-class LNG project backed by an experienced management team and a strong stakeholder group.
“We wish Freeport every success with the imminent commencement of operations and development of Train 4.”
The financing agreement with Westbourne Capital follows the FERC and DOE authorisations secured by Freeport LNG for the fourth train and also the contract awarded to KBR.
As per the contract, KBR will be responsible for the engineering, procurement, construction, commissioning and startup of the fourth train, and also the associated gas pre-treatment plant for the export of US natural gas to overseas markets.
Freeport LNG founder, chairman and CEO Michael Smith said: “We are happy to continue to progress our Train 4 expansion with an eye towards FID in the next several months.
“The Westbourne-led consortium have all been very supportive investors of Freeport in the past and we are excited to do more with them to grow the Company.”
The fourth LNG train, which will have a capacity of five million tonnes per annum (mtpa), is expected to enter into operations in 2023.
Freeport LNG export project updates
Recently, the Freeport LNG export project achieved shipping of the first LNG commissioning cargo for its first train, dispatching 150,000m3 of liquefied natural gas (LNG) on to the LNG Jurojin vessel.
The Freeport LNG export project, which is being developed on Quintana Island in Freeport, will have a total capacity of more than 20mtpa once all the four trains are fully developed.
The second liquefaction train of the LNG project is advancing towards the pre-commissioning stage with a target to commence production in January 2020. The third train, on the other hand, is likely to enter into service in May 2020.