Freeport LNG announced today that it has successfully closed on debt and equity financing commitments of approximately $11 billion in capital required for the development of the initial two trains of Freeport LNG's natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas. Freeport LNG has completed all milestones and issued a full notice to proceed to CB&I, Inc. and Zachry Industrial, Inc. to construct the first two liquefaction trains of the Freeport LNG export project. Financing and the start of construction on the third liquefaction train is expected in second quarter 2015. The first liquefaction train is expected to start operations in third quarter 2018, with the second liquefaction train expected to commence operations five months thereafter.
"We are excited to bring together a diverse group of the world's most sophisticated investors, lenders, LNG industry participants, and governmental institutions to support the advancement of the Freeport LNG liquefaction project, and look forward to completing a successful construction of the initial two trains and beginning commercial exports in 2018," said Michael S. Smith, Chief Executive Officer, Freeport LNG. For the first liquefaction train, approximately $4.3 billion in debt financing is being provided by Japan Bank for International Cooperation and the following six commercial banks: The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, Mitsubishi UFJ Trust and Banking Corporation, and ING Bank N.V., Tokyo Branch. The portion of the loans financed by the commercial banks is insured by Nippon Export and Investment Insurance (NEXI). Osaka Gas Co., Ltd. and Chubu Electric Power Co., Inc. are committed to invest approximately $1.24 billion for the development of the first train. For the second liquefaction train, approximately $4.025 billion in debt financing is being provided by a syndicate of 25 commercial banks under a 7-year mini-perm construction facility. IFM Investors is committed to invest approximately $1.3 billion in equity for the development of the second train.