Osaka Gas Co., Ltd. and Chubu Electric Power Co., Inc. have entered into an agreement with Freeport LNG to invest $1.2 billion of equity funding for Freeport LNG’s proposed natural gas liquefaction and LNG-loading facility on Quintana Island near Freeport, TX. The facility involves the development of three liquefaction plants or trains.
The investment by Osaka Gas and Chubu Electric will provide equity for the development of Freeport’s first train facility (Train One). Investment capital will be drawn down over Train One’s planned 45-month construction period. The balance of Train One’s capital needs is expected to come from a consortium of lenders comprised of a Japanese government financial agency and commercial banks.
In July 2012, Freeport LNG executed 20-year use-or-pay liquefaction tolling agreements with Osaka Gas and Chubu Electric equivalent to the minimum guaranteed production capacity of Train One.