Freeport LNG and Westbourne Capital have executed definitive agreements for a $1.025 billion loan that will fund Freeport LNG’s proposed fourth natural gas liquefaction train on Quintana Island in Freeport, Texas.
Under the agreement, Westbourne and its co-investors will exclusively provide the loan to a Freeport LNG unit in support of the expansion efforts.
This financing, combined with a contemplated bank facility, will be sufficient to provide 100 percent of the capital required for Train 4, Freeport LNG said.
This agreement follows Freeport LNG’s receipt of its FERC and DOE authorizations for the Train 4 project and its execution of a Train 4 fixed price EPC contract with KBR.
Under the terms of the Train 4 EPC contract, KBR will provide engineering, procurement, construction, commissioning and startup of the nominal 5 mtpa Train 4 and associated gas pre-treatment plant for the export of U.S. natural gas to international markets.
“We are happy to continue to progress our Train 4 expansion with an eye towards FID in the next several months,” said Michael Smith, founder, chairman and CEO, Freeport LNG.