Freeport LNG and Sumitomo sign HOA for liquefaction tolling services
September 5, 2018
Freeport LNG announced that it entered into a binding HOA with a unit of Sumitomo Corporation for 2.2 MTPA of LNG from the fourth Freeport train. Under the HOA, SCOA, a subsidiary of Sumitomo, 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 of Freeport LNG’s natural gas liquefaction and export facility located on Quintana Island, Texas. The statement said, “The 2.2 MTPA of capacity to be contracted under the LTA would enable SCOA to significantly expand its U.S. natural gas-related business across the value chain, from upstream development to LNG export.”
Edited from Freeport LNG Press Release.
