Freeport LNG Expansion L.P. and IFM Investors will invest $1.3 billion of equity funding for three natural gas liquefaction plants and a LNG loading facility.
The transaction, which will take place mid-2014, pending approvals, will provide equity for the development of Freeport's second facility. Construction is expected to take 51 to 54 months.
In December 2013, Freeport LNG was awarded two contracts, valued at about $2.5 billion each, to CB&I Inc. and Zachry Industrial Inc. The joint venture is responsible for constructing two parts of the liquefaction project.
Freeport LNG has received approval from the U.S. Department of Energy (DOE) to export LNG production to any country that has the capacity to import LNG and where trade is permissible.
Currently LNG production has been contracted under use-or-pay liquefaction tolling agreements with Osaka Gas Co. Ltd., Chubu Electric Power Co., Toshiba Corp. and SK E&S LNG LLC.
Freeport LNG now awaits FERC approval.
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