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Freeport LNG Expansion LP and IFM Investors have entered into an agreement to invest about $1.3 billion of equity funding for Freeport’s proposed natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas. The project involves the development of three liquefaction trains.

The investment by IFM Investors will provide equity required for the development of Freeport’s second train. Investment capital will be drawn down over train two’s planned 51- to 54-month construction period. The balance of the train two capital needs will be sourced from a consortium of project finance lenders.

On Dec. 10, 2013, Freeport LNG award two contracts, each valued at about $2.5 billion, to a joint venture between CB&I Inc. and Zachry Industrial Inc. to construct the initial two trains of the liquefaction project. Freeport LNG expects to receive Federal Energy Regulatory Commission approval for the three-train project and commence construction of the first two trains in mid-2014, with construction of the third train expected to begin in the first quarter of 2015. The first train is expected to commence operations 45 to 48 months from the start of construction, with the second train in operation about six months after the first.

Freeport LNG has received authorization from the U.S. Department of Energy to export the entire LNG production volume of the initial three 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. The minimum production capacity of the first and third liquefaction trains has been fully contracted under use-or-pay tolling agreements with Osaka Gas Co. Ltd., Chubu Electric Power Co., Toshiba Corp., and SK E&S LNG LLC. A 20-year agreement has been signed with BP Energy Co. for the minimum guaranteed production capacity of train two.