King & Spalding advised Freeport LNG Expansion, L.P., in the company’s agreements to enter into binding 20-year liquefaction tolling agreements (LTAs) with SK E&S LNG, LLC and Toshiba Corporation, each for a base quantity of 2.2 million tons per annum (mtpa), commencing upon completion of construction of the third train of Freeport LNG’s proposed natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas.
For more information on these transactions, view Freeport LNG’s press releases:
http://freeportlng.newsrouter.com/news_release.asp?intRelease_ID=7296&intAcc_ID=77 and http://freeportlng.newsrouter.com/news_release.asp?intRelease_ID=7297&intAcc_ID=77.
Commencement of construction of Freeport LNG’s liquefaction project is subject to receipt of authorization to commence construction from the U.S. Federal Energy Regulatory Commission (FERC) and final investment decision by Freeport LNG.
Freeport LNG has received authorization from the U.S. Department of Energy (DOE) to export the entire LNG production volume of the initial two trains of the liquefaction project to any country that has, or in the future develops, the capacity to import LNG and with which trade is permissible. Freeport LNG’s application to export up to two additional trains of production volume to countries with which the United States does not have free trade agreements (non-FTA) remains pending with the DOE, and is currently second in the queue established by the DOE for review and processing of pending non-FTA export applications.
Freeport LNG expects to receive FERC approval to commence construction of the first three liquefaction trains in the first quarter of 2014. The first train is anticipated to commence operations 42-48 months from start of construction, with the second train in operation six to nine months after the first train. Construction of the third train is anticipated to begin in late-2014, and to commence operations six to nine months after the second train.
The King & Spalding legal team representing Freeport LNG consists of energy partner Philip R. Weems, energy associate Monica Hwang, construction partner Scott A. Greer, construction associate David Strickland, real estate partner Peter M. Oxman and corporate partner Jeffrey M. Stein. Stein is located in King & Spalding’s Atlanta office; the other lawyers are in its Houston office.
In July 2012, King & Spalding represented Freeport LNG on liquefaction tolling agreements with Osaka Gas Co., Ltd. and Chubu Electric Power Co, and in February 2013 King & Spalding represented Freeport LNG on liquefaction tolling agreements with BP Energy.
King & Spalding’s LNG team is one of the most active and experienced in the world. The firm has a large team of lawyers who spend the majority of their time on LNG matters and has been counseling clients on LNG projects, transactions and disputes globally from the late 1980s through the industry’s recent unprecedented growth.
