Freeport LNG Looking For Financing – Planning Gas Exports

Alos Seeking Approval To Expand From 1.4 To 2.8 Bcfd
Freeport TX LNG

Freeport, TX | Click to Enlarge

Freeport LNG is looking to raise more than $7.5 billion to begin construction at its proposed LNG export facility in Freeport, TX.

The Energy Department has approved 1.4 Bcfd in exports at the site and the company is seeking approval for an additional 1.4 Bcfd. The facility still needs FERC approval and expects to know more in 2014. If everything goes as planned, one export train a year will come online starting in 2017.

The Freeport LNG facility has agreements to export gas for Osaka Gas, Chubu Electric Power, and BP.

Cheniere Energy is the only LNG export facility to receive full approval to export US natural gas. The Cheniere facility is located at Sabine Pass and construction started in August of 2012.

Production continues to grow in what are historically consuming areas like the Marcellus Shale. If production continues to grow in the Northeast, exports will be a welcomed market for Eagle Ford gas. Exports might even be needed to support any significant amount of natural gas development.

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R.T. Dukes

R.T. Dukes

Managing Editor at EagleFordShale.com
R.T. is the managing editor of EagleFordShale.com. In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

Comments

  1. Tom Williams says:

    IF production continues to grow in the Northeast, exports will be THE ONLY market for Eagle Ford gas. Exports IS needed to support any significant amount of natural gas development. US ENDUSER PRICES KILLED/KILLS THE TX/LA GAS PRODUCTION – EVERYONE SHUTIN THEIR WELLS UNLESS THEY HAVE A CASHFLOW PROBLEM AND ONLY EXPORTS CAN MAKE A BLIP IN THE PRICING – FORGET ABOUT FLEET AND FERTILIZER USERS – AIN’T ENOUGH DEMAND

    ACTUALLY THE EAGLE FORD HAS AN EXPORT PROBLEM – 25YR GAS SUPPLY CONTRACTS ARE VERY DIFFICULT THESE DAYS AS EVERYONE – SO.AMER, NOAFR., AND EUR/TURKEY WILL SOON HAVE THEIR FRACGAS ON LINE BEFORE 5YR TO BUILD A REAL LNG TERMINAL —-GAS BUBBLE WILL BE AS BAD AS HOUSING BUBBLES…

    US OIL PRODUCTION AND ASSOCIATED GAS IS ALREADY RISING SO FAST AS TO KEEP THE LA/TX GAS WELLS SHUT IN – NO ROYALTIES BEING PAID.

    MANY BUMPY ROADS AHEAD – BUT WE HAVE BEEN HERE BEFORE – an even older O&G friend told me that being a millionaire wasn’t really all that good of a deal….he had been one several times and still expects to be one again soon —-
    Tom

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