Project Snapshot
Freeport LNG
Facility Type: LNG
Scope: Expansion
Owner: Freeport LNG Development, L.P.
Location: Quintana Island, Texas  United States
Region: North America
Modified:  November 24, 2010

Facility description

The Freeport LNG terminal is six miles from open water off a 45-foot deep ship channel in Quintana Island, Texas, which can accommodate LNG carriers as well as LNG vessels.

The facility consists of a marine berthing dock and associated unloading facilities for LNG ships, a new and expanded vaporization system, two LNG storage tanks, and a 9.6-mile long natural gas send-out pipeline.

Phase 1 of the construction included two 160,000 cubic meter LNG storage tanks and one piled dock capable of handling LNG vessels in excess of 200,000 cubic meters, in order to accommodate the largest LNG tankers under construction today. The first phase of the project allows the facility to have a send-out capacity of 1.75 Bcf/d.


Phase 2 of the project, which has undergone the permitting process and will be built when market conditions allow, will increase the LNG import terminal's planned send-out capacity from 1.75 billion cubic feet per day to 4.0 Bcf/d. Also, it will increase from 200 to 400 the number of LNG carriers the terminal can handle in a given year.

Phase 2 plans call for the following improvements: an abandoned barge dock will be removed, a second ship berth will be dredged adjacent to the Phase 1 berth, the existing vaporization facilities and utility systems will be expanded to accommodate increased terminal capacity, and a third LNG tank will be built west of and adjacent to storage tanks.

Natural gas will be transported through a 9.4-mile pipeline to Stratton Ridge, Texas, which is a major point of interconnection with the Texas intrastate gas pipeline system.

Liquefaction Capacity

On November 22, 2010, Freeport LNG and Macquarie Energy—a major North American natural gas marketer owned by the Australia-based Macquarie Group—announced a proposal to build four liquefaction trains at the terminal. In effect, Freeport LNG would become a natural gas exporter. The decision to pursue this course of action, rather than add gasification capacity, reflects the increasingly abundant production and inventories of natural gas in the United States. A dramatic increase in production from domestic fields such as the Haynesville, Marcellus, and Eagle Ford shale plays has increased the possibility that the U.S. could become a net natural gas exporter.

Each of the four new, medium-sized liquefaction trains at Freeport would be capable of converting 330 MMcf/d of natural gas into LNG. Aside from its access to the extensive U.S. pipeline network via two large natural gas trading hubs nearby (Houston Ship Channel and Katy Hub), Freeport LNG's location near the Gulf of Mexico will allow it to reach the Asian market once the Panama Canal begins to allow the passage of LNG carriers in 2014.

Freeport LNG will be the project's lead developer, obtaining government approvals and acting as the facility's sole owner and operator. Macquarie, which is contributing toward project development costs, will oversee all upstream and downstream arrangements. Both companies will exclusively market at least 50 percent of the liquefaction capacity, and Freeport will offer 50 percent of the capacity to its existing customers. Otherwise, both companies will jointly market capacity.

Freeport LNG's existing authorization from the Federal Energy Regulatory Commission (FERC) already covers a portion of the liquefaction project, which would be located entirely within the existing terminal's footprint. However, the developer will begin the approval process with FERC for the expansion shortly after filing for an export license with the U.S. Department of Energy.

Freeport LNG expects the government approval process to take approximately two years. It anticipates an early 2015 start-up of the liquefaction trains.

  Key Stats
Major process units:
a marine berthing dock and associated unloading facilities for LNG ships, a new and expanded vaporization system, two LNG storage tanks, and a 9.6-mile long natural gas send-out pipeline; four liquefaction trains (330 MMcf/d capacity each)
Pre-project processing capacity:
1.75 Bcf/d
Post-project processing capacity:
4.0 Bcf/d
Project cost:
$300 million
  Related Articles
Freeport LNG Terminal Proposal Closer to Approval After Impact Study
Mar 14, 2014 - Freeport LNG Development LP's proposed LNG export terminal will not cause significant environmental harm, a draft federal review concluded on Friday.
Osaka Gas, Chubu Elec Take Stakes in U.S. Freeport Gas Export Unit
Feb 27, 2014 - Japan's Osaka Gas Co and Chubu Electric Power Co said on Thursday each plans to invest about $600 million for individual stakes of 25 percent in a gas export facility at the Freeport LNG gas project in Texas.
CB&I-Zachry JV to Build Freeport Trains 1 and 2
Dec 10, 2013 - CB&I Tuesday announced a joint venture between CB&I and Zachry Industrial, Inc. has been awarded two contracts, each valued at approximately $2.5 billion, to construct the first two trains of the Freeport Liquefaction Project.
Cornelius to Succeed Reimer at Freeport LNG
Dec 05, 2013 - Freeport LNG Wednesday announced that it has selected Sigmund (Sig) Cornelius, 59, to succeed Charles Reimer, 69, as president and chief operating officer, effective April 1, 2014.
U.S. Approves Additional LNG Exports from Freeport LNG
Nov 15, 2013 - The U.S. Department of Energy said on Friday it has conditionally approved more exports of liquefied natural gas from Freeport LNG in Texas, a move that could lead to more shipments of the fuel in coming years.
COLUMN-US Gas Exports to Asia Will Narrow, Not Shut Price Gap: Kemp
Sep 13, 2013 - Large-scale gas exports from the United States will narrow the gap between U.S. domestic prices and those in Asia, but the boost to U.S. domestic gas prices is likely to be smaller than U.S. gas producers hope and consumers fear.
Freeport LNG Head Expects 3rd Train FID by End-2014
Sep 10, 2013 - Freeport LNG expects to take the final investment decision on its third processing unit at its liquefied natural gas (LNG) project in Texas near the end of 2014, the head of the company told Reuters on Tuesday.
Japan's Toshiba Set to Buy U.S. Natural Gas from 2018
Sep 09, 2013 - Japan's Toshiba Corp has signed a liquefied natural gas tolling agreement with the proposed Freeport LNG export plant in Texas.
US Approval of LNG Exports Paves Way for Asian Spot Market
May 20, 2013 - Japanese LNG buyers see U.S. government approval for a Texas LNG facility to export gas to countries with which it doesn't have free-trade agreements as a step forward.
Energy Department Approves Freeport Natural-Gas Export Permit
May 17, 2013 - The Obama administration on Friday cleared the way for broader natural gas exports by approving a $10 billion facility in Texas, a milestone in the U.S. transition into a major supplier of energy for world markets.
With BP Deal, Freeport LNG Fully Contracts First Two Trains
Feb 12, 2013 - Freeport LNG has entered into a binding 20-year Liquefaction Tolling Agreement (LTA) with BP for 4.4 million tons per annum (mtpa).
Freeport, Cheniere Plan to Become Gulf Gas Exporters
Jan 25, 2011 - Two companies are developing terminals along the Gulf Coast to export gas to Asia and, possibly, the Middle East.
Macquarie, Freeport to Develop LNG Export Project
Nov 22, 2010 - Macquarie Energy and Freeport LNG Expansion, L.P. on Monday announced an agreement to jointly develop and market liquefaction capacity at Freeport LNG's existing LNG import terminal near Freeport, Texas.
Cheniere Sells Interest in Freeport LNG
May 14, 2010 - Cheniere Energy, Inc. announced Friday the closing of the sale of its 30 percent limited partner interest in Freeport LNG Development L.P.
Coast Guard Issues Recommendation Letters for Eight Terminals
Apr 10, 2009 - The U.S. Coast Guard said Friday that it has issued letters of recommendation for eight liquefied natural gas facilities under development on the Gulf Coast.
LNG Flows Brighten Outlook for Cheniere
Apr 07, 2009 - A reversal of fortune may be ahead for Cheniere Energy Inc. (LNG).
Freeport LNG Ops Continue
Sep 20, 2008 - Freeport LNG Development, L.P. ("FLNG") reported Monday, September 15 that operations at its LNG receiving terminal on Quintana Island, Texas, were continuing and that it sustained only minor damage.
Inaugural LNG Cargo Arrives At Freeport
Apr 17, 2008 - Bird-watchers on Quintana Island had their eyes peeled for scarlet tanagers, indigo buntings and yellow-throated warblers Tuesday morning, but few were expecting the arrival of the orange Excelsior.
Contango Sells Stake in Freeport LNG
Feb 05, 2008 - Contango Oil & Gas Co. said Tuesday that the previously announced sale of its 10-percent limited partnership interest in Freeport LNG Development LP to Turbo LNG LLC, an affiliate of Osaka Gas Co., Ltd., closed on February 5, 2008.
Contango to Sell Stake In Texas LNG Project
Jan 08, 2008 - Contango Oil & Gas Co. on Tuesday said that it has entered into a definitive agreement with a major Asian utility company to sell its 10% limited partnership interest in Freeport LNG Development LP for approximately $68 million.
Freeport LNG Selects Enviance for EHS Compliance
Feb 28, 2007 - Freeport LNG Development, L.P., developer of the first liquefied natural gas (LNG) terminal to be built in the U.S. in more than 20 years, has chosen the Enviance System for the management, automation, and reporting of EHS compliance.
Freeport LNG Receives FERC Authorization for LNG Terminal Expansion
Sep 22, 2006 - Freeport LNG Development, L.P. has received Federal Energy Regulatory Commission (FERC) authorization to expand the capacity of its liquefied natural gas (LNG) receiving terminal from 1.5 billion cubic feet per day (Bcf/d) to 4 Bcf/d.

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