Project Financing for Freeport LNG Project
Supporting Japanese Company's Participation in U.S. LNG Export Project

  • Area: North America
  • Energy and Natural Resources
  • [Project Finance]

JBIC signed a loan agreement in project financing with FLNG Liquefaction, LLC (FLIQ), a company in the U.S. Osaka Gas, Chubu Electric, and Freeport LNG Expansion, L.P. have invested in FLIQ. This loan will finance new construction of a liquefaction plant in the state of Texas, and production of LNG made from shale gas and conventional gas produced in the U.S. Osaka Gas and Chubu Electric have obtained the right to use liquefaction facilities and offtake LNG as tollers. This is a long-term LNG procurement project using the pricing mechanism linked to the U.S. gas market index, which is different from the existing LNG pricing linked to crude oil prices. Thus, this project contributes to the diversification of LNG procurement sources and the pricing mechanism.
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