LNG

Freeport LNG signs 2.2 mtpa deal with Sumitomo

Freeport LNG has signed a binding heads of agreement to allocate 2.2 mtpa from its fourth train to Sumitomo
By Staff reporter 6 September 2018 0 32445

The developers of the United States-based Freeport LNG project have signed a binding heads of agreement to allocate 2.2 mtpa of capacity from its fourth train to Japan’s Sumitomo, Freeport announced on Wednesday.

Sumitomo’s Americas subsidiary has agreed to negotiate a 20-year liquefaction tolling agreement that is expected to start in 2023 once the fourth train begins commercial operations.

Freeport needs to sign contracts for approximately 3.5 mtpa of the train’s 5 mtpa capacity to secure financing and start construction.