HOUSTON, June 26, 2018 /PRNewswire/ — Freeport LNG Marketing, LLC (Freeport LNG) today announced that it had entered into a binding mid-term sales and purchase agreement (SPA) with Trafigura PTE LTD (Trafigura) for 0.5 million tons per annum (mtpa), to be supplied from its natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas. The SPA with Trafigura will commence on July 1, 2020, soon after the expected completion of construction of the third liquefaction train.
“We welcome Trafigura’s more than 25 years of global commodity trading experience to Freeport LNG’s expanding operations. We view this as the start of a long-term relationship that will be key in growing our future business,” said Michael S. Smith, Chief Executive Officer, Freeport LNG.
“Trafigura puts the security of supply for its customers at the heart of our LNG strategy. We view this agreement as a further proof of our commitment to this and are proud to count Freeport LNG as our partner,” said Hadi Hallouche Head of Oil Asia at Trafigura.
About Freeport LNG
Freeport LNG Marketing, LLC 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 import operations in June 2008, and is expected to begin export operations in 2019. In aggregate, the three natural gas liquefaction trains currently under construction are expected to produce in excess of 15 mtpa of LNG. Of this amount, 13.4 mtpa of capacity has been contracted to Osaka Gas Trading & Export, LLC, JERA Energy America, LLC, BP Energy Company, Toshiba America LNG Corporation and SK E&S LNG, LLC. A fourth liquefaction train is under development with an expected start date in 2023. Freeport LNG’s limited partnership interests are ultimately held by Michael Smith, Global Infrastructure Partners, and Osaka Gas Co., Ltd.
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world. The trading business is supported by industrial and financial assets, including 49.6 percent owned global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura’s Mining Group; and Galena Asset Management. Trafigura is owned by around 600 of its 3,935 employees who work in 62 offices in 35 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD136.4 billion in 2017. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade. Visit: www.trafigura.com