Project Profile
Value: US$10 billion
Location: Freeport, Texas, USA
Storage capacity: 2.0 Bcf/d (gas equivalent)
Export Capacity: 13.9 mtpa
Start-up Year: 2018
Freeport LNG Expansion, L.P., is a wholly owned subsidiary of Freeport LNG Development, L.P. Freeport LNG Development owns and operates a liquefied natural gas regasification terminal located near , Texas. The project, known as Freeport LNG, is expected to require more than US$10 billion in investment. The Freeport LNG import terminal commenced commercial operations in June 2008 with capacity to unload and vaporize approximately 2.0 Bcf/d (gas equivalent) of LNG. 1.65 Bcf/d of the terminal’s import capacity is sold under long-term terminal use agreements. However, due to low natural gas prices in the U.S. relative to global LNG markets, all Gulf Coast LNG import terminals have seen significant underutilisation. While forecasts that natural gas prices will remain relatively low in the U.S. do not bode well for import terminals, the price differential has opened up an opportunity to make the U.S. a leading exporter of natural gas.
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 is serving as Freeport LNG\'s financial advisor with respect to the proposed financing for the first two trains of the project. King & Spalding advised Freeport LNG on its agreement with BP. documentation pertaining to the liquefaction project, including regulatory applications and related materials. Freeport is curently undertaking an expansion project to increase capacity. This expansion will give Freeport LNG 13.9 million tons a year of export capacity. Startup is expected in 2018.
Operators:
Freeport LNG Expansion, L.P.: Operator with 100% interest
Contractors:
CH-IV International: Engineering support
CB&I: FEED for the initial three trains of the liquefaction project
Joint venture to provide engineering, procurement and construction work:
CB&I
Zachry Industrial
King & Spalding: Advisor of Freeport LNG on its agreement with BP, including documentation pertaining to the liquefaction project, regulatory applications and related materials
Macquarie Capital: Financial advisor with respect to the proposed financing for the first two trains of the project
Zachry Industrial Inc: FEED for the initial three trains of the liquefaction project
GE Oil & Gas: Supply contract of both the main refrigeration compressors, variable-speed drive electric motors and other electrical equipment for two customized LNG liquefaction trains, each of which will produce a base volume of 4.4 metric tonnes per annum of LNG. In addition, GE is providing financing to support the project through pre-construction engineering and design.
CenterPoint Energy: EPC contract to build new and expand existing electric transmission infrastructure to provide the 656 MWs needed to serve the Freeport LNG export project currently under construction on Quintana Island in Brazoria County.
CB&I, Chiyoda and Zachry Industrial: Contract by Freeport LNG for the engineering, procurement and construction of the third train of the liquefaction and export facility on Quintana Island in Texas. The contract is valued in excess of US$2 billion. The scope of work also includes a double-walled, full-containment 165,000 (gross) cubic metre liquefied natural gas storage tank, which will be supplied by CB&I.
CH-IV International: Contract to manage the development of the formal Federal Energy Regulatory Commission application, including detailed engineering and design, for Freeport LNG’s train 4 at the Quintana Island facility.
Honeywell (HON) Process Solutions (HPS): Contract to provide its automation and security systems to help Freeport LNG Development, L.P. (Freeport LNG) expand its southeast Texas liquefied natural gas (LNG) terminal. HPS will be responsible for designing, delivering and installing the automation, instrumentation, controls, and safety and security systems. Honeywell will go beyond the traditional main automation contractor role to include a broader scope of products, services, and consulting capabilities that add value over the entire project and operating lifecycle of the venture. Specific key deliverables include a number of Honeywell\'s innovative and patented technologies including LEAP, Honeywell\'s lean project execution services, Experion® PKS Orion with Distributed Systems Architecture (DSA), Experion Security Integrator, Fault Tolerant Ethernet (FTE), Universal process and safety I/O, virtualization, advanced control, Safety Manager, Fire and gas systems, OneWireless™ Network, Digital Video Manager™ (DVM), UniSim operator training simulator, advanced alarm management software, and PHD data historian.
Air Products: Agreement to provide its LNG technology, equipment, and process license for Freeport LNG’s Train 3 gas liquefaction and export project. The sale includes Air Products’ main cryogenic coil wound heat exchangers and associated technology, which will be vital in the production of LNG at the facility near Freeport, Texas. Air Products will supply its AP-C3MRTM liquefaction technology, and its MCR Main Cryogenic Heat Exchanger will be installed at the heart of the propane pre-cooled mixed refrigerant liquefaction process. Air Products technology and equipment for Train 3 is scheduled to be on stream in 2019.
Gulf South: The US regulator issued an order authorizing the expansion of its existing 129 system and the construction of the Coastal Bend Header project that would transport up to 1.42 billion cubic feet of natural gas per day to the Freeport LNG terminal. (June, 2016)
Yokogawa Corporation of America: To provide analyzer systems and shelters for Freeport LNG’s liquefaction facility and pre-treatment facility. Currently, the order includes only the first two liquefaction trains. (August, 2016)