Osaka Gas and Chubu Electric execute liquefaction tolling agreements with FLNG Liquefaction, LLC

July 31, 2012
Osaka Gas and Chubu Electric execute liquefaction tolling agreements with FLNG Liquefaction, LLC

Osaka Gas Co., Ltd. (“Osaka Gas”) and Chubu Electric Power Co., Inc. (“Chubu Electric”) today announced that they have executed binding liquefaction tolling agreements with FLNG Liquefaction, LLC (“FLIQ”), an affiliate of Freeport LNG Expansion, L.P. (“FLEX” and, together with FLIQ, “Freeport LNG”)

Freeport LNG plans to construct a liquefaction facility consisting of three trains each with a capacity of approximately 4.4 million tons of LNG per annum (mtpa) at the existing Freeport LNG regasification terminal. After gaining regulatory approvals, namely a long-term authorization from the Department of Energy to export LNG to non-FTA countries and a construction permit from the Federal Energy Regulatory Commission, Freeport LNG will start construction of the liquefaction facility towards its launch of commercial operation in 2017.

Pursuant to the agreements, Osaka Gas and Chubu Electric will each acquire a 2.2mtpa production capacity of the first train at Freeport and will be able to secure the U.S. origin LNG produced from natural gas (mainly shale gas) procured by themselves in the United States.

The two companies believe that acquisition of liquefaction capacity will contribute to diversifying the sources of LNG and help to achieve their stable and economical procurement.

Notes
1. Overview of Freeport liquefaction project