Osaka Gas USA is pleased to announce that the Freeport LNG Project (the “Project”) in Texas, the United States, has achieved sustained LNG production for its first liquefaction train. First LNG for Freeport LNG’s Train 1 was reached August 12. Osaka Gas Co., Ltd. (“Osaka Gas”, parent company of Osaka Gas USA) and JERA Co., Inc. (“JERA”) participate the Project through FLNG Liquefaction, LLC (“FLIQ1”). Osaka Gas and JERA will continue to work toward commercial operation in the fall of 2019.
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. After achieving commercial start up, Osaka Gas and JERA will respectively lift half of Train 1’s total contracted capacity approximately for 4.64 MTPA, on the liquefaction tolling agreements with FLIQ1.
Osaka Gas and JERA have, by participating in the Project through each USA subsidiary, 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.
See also media release by Osaka Gas