Freeport LNG awards third train contract

OREANDA-NEWS. Japanese engineering firm Chiyoda and US energy infrastructure companies CB&I and Zachry Industrial have won an engineering and construction contract worth 240bn yen (\$2bn) for the proposed Freeport LNG export project in the US.

The three contractors will build the third liquefaction train and associated export facilities at the site of Freeport's existing LNG import terminal on Quintana island in Texas. The construction is expected to start in this year's second quarter.

The trio has also taken part in building the first two trains that started in November last year, Chiyoda said. The first train is scheduled to start up in September 2018, with the second and third following five months after the previous train comes on line.

The US Department of Energy has already authorised the \$14.2bn project to export up to 13.2mn t/yr of LNG, equivalent to 1.8bn ft3/d (51mn m3/d), for 20 years to countries that do not have free trade agreements with the US, such as Japan.

Japanese utilities Osaka Gas and Chubu Electric Power have agreed to buy 2.2mn t/yr from Freeport, starting when the first train comes on line. BP has contracted for 4.4mn t/yr from when the second train starts operating. South Korean utility SK E&S and Japan's Toshiba have each signed contracts for 2.2mn t/yr, starting when the third train comes on line.