Freeport LNG Marketing, a unit of the US LNG terminal operator and developer Freeport LNG, said it had entered into a binding mid-term sales and purchase agreement with trading company Trafigura.
Under the deal, Freeport LNG will supply 0.5 million tonnes from its natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas.
The SPA with Trafigura will commence on July 1, 2020, soon after the expected completion of construction of the third liquefaction train, according to a Freeport LNG statement.
The three natural gas liquefaction trains currently under construction at the existing Freeport LNG terminal are expected to produce in excess of 15 mtpa of LNG.
Of this amount, 13.4 mtpa of capacity has been contracted to Osaka Gas, JERA, BP, Toshiba and SK E&S. A fourth liquefaction train is also under development with an expected start date in 2023.
“We welcome Trafigura’s more than 25 years of global commodity trading experience to Freeport LNG’s expanding operations. We view this as the start of a long-term relationship that will be key in growing our future business,” said Michael S. Smith, Chief Executive Officer, Freeport LNG.