Freeport LNG Expansion LP and IFM Investors report that IFM Investors has entered into an agreement to invest approximately $1.3 billion of equity funding for Freeport LNG's proposed natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas. The facility involves the development of three liquefaction plants, also known as "trains."
The investment by IFM Investors will provide equity required for the development of Freeport's second facility (Train 2). Investment capital will be drawn down over Train 2's planned 51-month to 54-month construction period. The balance of the Train 2 capital needs will be sourced from a consortium of project finance lenders. Financial close for the transaction is expected to take place in mid-2014.
In February 2013, Freeport LNG executed a 20-year use-or-pay liquefaction tolling agreement with BP Energy Co. equivalent to the minimum guaranteed production capacity of Train 2.