May 13, 2019 / 7:09 PM / 11 days ago

Freeport picks KBR as preferred bidder for 4th Texas LNG export train

    May 13 (Reuters) - Freeport LNG picked KBR Inc         as
the preferred bidder for the engineering, procurement,
construction, and commissioning (EPC) contract for the fourth
liquefaction train at Freeport's liquefied natural gas (LNG)
export terminal in Texas:
    
    * In a release, KBR said it expects the fixed price EPC
contract will be concluded this quarter and will be followed by
a limited notice to proceed, with a full notice to proceed in
the second half of 2019.
    * Freeport has said it could make a final investment
decision on Train 4 during the second quarter with the plant
expected to enter service in 2023 or 2024.
    * Freeport has said Train 1 is on track to enter service in
the third quarter followed by Train 2 in the first quarter of
2020 and Train 3 in the second quarter of 2020.             
            
    * When Freeport started building the first three trains at
the $13 billion facility it projected the units would enter
service between the fourth quarter of 2018 and the fourth
quarter of 2019.             
    * Rival engineering firm McDermott International Inc        
is the lead contractor for the first three units at Freeport.
    * Freeport, the privately held developer of the project, has
said the first cargoes from the plant would likely start in late
July.
    * Each train at Freeport will have the capacity to produce
about 5 million tonnes per annum (MTPA) of LNG or around 0.7
billion cubic feet per day (bcfd) of natural gas. One billion
cubic feet is enough gas to supply about 5 million U.S. homes
for a day.
    * Freeport has said it has 20-year contracts to sell LNG to
Japanese gas company Osaka Gas Co Ltd          and JERA - an
alliance between Japanese power companies Tokyo Electric Power
Co Holdings Inc          and Chubu Electric Power Co Inc
         - from Train 1, British oil major BP Plc        from
Train 2 and Japanese engineering firm Toshiba Corp          and
South Korean energy company SK E&S from Train 3.
    * Freeport also has a three-year deal to sell 0.5 MTPA of
LNG to multinational commodity trading firm Trafigura Group Pte
Ltd starting in July 2020.             
    * Freeport has said it is working on a 20-year deal to sell
2.2 MTPA of LNG to a unit of Japanese trading firm Sumitomo Corp
         from Train 4.

    
 (Reporting by Scott DiSavino in New York
Editing by Matthew Lewis)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below