King & Spalding’s global energy practice has advised Freeport LNG on the liquefaction tolling agreements for the first of three proposed liquefaction trains to be built near Freeport, Texas, at Freeport LNG’s existing LNG import terminal.
All three trains are expected to be fully subscribed by the end of 2012 and, once completed, will be capable of liquefying approximately 13.2 million tons per annum of natural gas.
Freeport LNG’s liquefaction tolling agreements with Osaka Gas and Chubu Electric Power will cover 100% of the first train’s liquefaction capacity. Subject to regulatory approval and a final investment decision, Osaka Gas and Chubu Electric will each acquire rights to 2.2 million tons per annum production capacity of the first train over an initial 20-year term.
King & Spalding will continue to represent Freeport LNG on the two remaining trains of the liquefaction project, with definitive agreements for both expected before year-end. The firm also represented Freeport LNG on the front-end engineering and design (FEED) contract for the facility earlier this year.
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Fairstar Heavy Transport N.V. (FAIR) has signed a third contract with Chevron PTY LTD and the Kellogg Joint Venture – Gorgon.
Under the terms of the contract, the semi-submersible vessel FJELL will provide marine transportation of modules and other related equipment over a series of voyages commencing in the second half of 2012 for a period of ten months. Chevron Australia PTY LTD and the Kellogg Joint Venture – Gorgon have options to extend the contract for up to an additional nine months.
The Gorgon Project, operated by Chevron Australia PTY LTD, is a joint venture of Chevron (approximately 47 percent), ExxonMobil (25 percent) and Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (one percent) and Chubu Electric Power (0.417 percent).