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Press Release

Start of Commercial Operation at the Freeport LNG Project in Texas

2019/12/10

The Freeport LNG Project (the “Project”) in Texas, the United States, has started commercial operation for its first liquefaction train on 8 December 2019. Osaka Gas Co., Ltd. (“Osaka Gas”) and JERA Co., Inc. (“JERA”) participate in the Project through FLNG Liquefaction, LLC (“FLIQ1”).

 

FLIQ1 made its final investment decision in the Train1 in October 2014. The Project will produce LNG for export from natural gas procured in the United States. The project operator is Freeport LNG Development, L.P. Osaka Gas and JERA will respectively lift approximately 2.32 MTPA of LNG based on the liquefaction tolling agreements with FLIQ1.

 

Osaka Gas and JERA have, by participating in the Project, contributed to its start-up, and intend to utilize the experience gained through operation of the Project to expand their LNG businesses.

 

In addition, through the procurement of LNG from the Project, Osaka Gas and JERA will each secure LNG without destination restrictions, diversify their supply sources and price indices, and enhance the stability and flexibility of their LNG procurement.

 

Outline of Freeport LNG Project

Location

Freeport, Texas, USA

Liquefaction capacity

Approx. 5.0 MTPA x 3 trains

Total

contracted capacity

Osaka Gas: Approx. 2.32 MTPA (20-year liquefaction tolling agreement)

JERAApprox. 2.32 MTPA (20-year liquefaction tolling agreement

 

First liquefaction train of the Project Provided courtesy of Freeport LNG Development L.P.

Corporate information of Osaka Gas

Corporate name: Osaka Gas Co., Ltd.

Headquarters location: 4-1-2 Hiranomachi, Chuo-ku, Osaka, Japan

President: Takehiro Honjyo

 

Corporate information of JERA

Corporate name: JERA Co., Inc.

Headquarters location: Nihonbashi Takashimaya Mitsui Building 25th Floor 2-5-1 Nihonbashi, Chuo-ku, Tokyo

President: Satoshi Onoda

  

Corporate information of FLNG Liquefaction

Corporate name: FLNG Liquefaction, LLC

Headquarters location: Houston, Texas, USA

Shareholders: Freeport LNG Expansion, L.P. subsidiary (50%). Osaka Gas subsidiary (25%), JERA subsidiary (25%)

 

Project Structure (for reference purpose)