Japanese companies invest over a billion dollars in Texas LNG plant
Osaka Gas Co. (9532) and Chubu Electric Power Co. (9502), utilities serving central and western Japan, will invest $600 million each for half the equity of the first unit of a U.S. liquefied natural gas plant.The deal should also benefit from the widening of the Panama Canal. This should keep Texas in the forefront as the state with the most exports of any in the US.
The companies will each get 25 percent in Train 1 of a plant in southeast Texas operated by Houston, Texas-based Freeport LNG Development LP, the Japanese utilities said in a joint statement today. The LNG plant’s first unit will produce about 4.4 million metric tons a year and is scheduled to begin operating in 2018, according to the statement.
The investment, which will be finalized in the second half of the year after the project wins a construction permit, follows a 20-year supply contract Freeport signed with the Japanese firms in 2012. Converting gas into liquid was scheduled to begin in 2017, the partners said at the time.