|Freeport LNG-Sumitomo Corp Press Release
|| Joint Press Release
FREEPORT LNG AND SUMITOMO CORPORATION OF AMERICAS SIGN HEADS OF AGREEMENT FOR LIQUEFACTION TOLLING SERVICES
HOUSTON, September 5, 2018 – FLNG Liquefaction 4, LLC (FLIQ4) and Sumitomo Corporation of Americas (SCOA) jointly announced today that they have entered into a binding Heads of Agreement (HOA) for 2.2 million tons per annum (mtpa) of LNG. Under the HOA, SCOA, a subsidiary of Sumitomo Corporation, has agreed to negotiate for a 20-year liquefaction tolling agreement (LTA). The LTA is expected to start in 2023 upon the commencement of commercial operations of the fourth train (Train 4) of Freeport LNG’s natural gas liquefaction and export facility located on Quintana Island near Freeport, Texas.
The 2.2 mtpa of capacity to be contracted under the LTA will enable SCOA to significantly expand its U.S. natural gas-related business across the value chain, from upstream development to LNG export.
“We are pleased to announce the start of a long-term relationship with Sumitomo as our first Train 4 foundation customer,” said Michael Smith, Chairman and CEO of Freeport LNG. “Sumitomo’s significant U.S. gas trading and LNG operations makes it an especially great addition to our outstanding group of existing customers. Sumitomo’s 2.2 mtpa of capacity under this HOA is a major step toward Freeport LNG contracting the approximately 3.5 mtpa needed for financing and commencing construction of Train 4.”
“This valuable partnership with Freeport LNG is an excellent step for SCOA as we continue to expand our business within this sector,” said Shingo Ueno, President and CEO of Sumitomo Corporation of Americas. “We believe our ability to learn and grow through this long-term project will allow us to provide real value to the energy industry globally, connecting the growing natural gas supply in the U.S. and the increasing appetite for LNG worldwide.”
About Freeport LNG
FLNG Liquefaction 4, LLC is developing Train 4, and is a wholly owned subsidiary of Freeport LNG Development, L.P., which owns and operates an LNG terminal on Quintana Island, near Freeport, Texas. The terminal started LNG import operations in June 2008 and is scheduled to begin LNG export operations in 2019 with the commercial operation of the first of three liquefaction trains currently under construction. These three trains are expected to produce in excess of 15 mtpa. Of this capacity, 13.9 mtpa has been contracted to Osaka Gas Trading & Export, LLC, JERA Energy America, LLC, BP Energy Company, Toshiba America LNG Corporation, SK E&S LNG, LLC., and Freeport LNG Marketing, LLC, which concluded the recently announced agreement with Trafigura PTE LTD. Freeport LNG’s limited partnership interests are ultimately held by Michael Smith, Global Infrastructure Partners, and Osaka Gas Co., Ltd.
About Sumitomo Corporation of Americas
Established in 1952 and headquartered in New York City, Sumitomo Corporation of Americas (SCOA) has 8 offices in major U.S. cities. SCOA is the largest subsidiary of Sumitomo Corporation, one of the world’s leading traders of goods and services. As an integrated business enterprise, the firm has emerged as a major organizer of multinational projects, an expediter of ideas, an important international investor and financier, and a powerful force for distribution of products and global communications through a network of offices worldwide. Its core business units include Tubular Products, Environment and Infrastructure, Steel and Non Ferrous Metals, Transportation and Construction Systems, Chemicals and Electronics, Media and IOT Applications, Real Estate, Mineral Resources and Energy, and Food.
SCOA is deeply committed to the energy space and its U.S. energy business includes oil, gas and power assets through its subsidiaries Summit Discovery Resources, Perennial Power and Pacific Summit Energy (PSE). PSE’s business activities include the trading and marketing of natural gas, power, and oil, as well as overseeing its LNG supply position at the Cove Point LNG.
For further information, please visit our website at www.sumitomocorp.com or contact:
Ms. Jewelle Yamada
Ms. Amy Babcock
For further information, please visit our website at www.freeportlng.com or contact: