Freeport LNG Expansion,L.P., Zachry/CB&I Joint Venture Sign Front-End Engineering and Design Contract for Development of Freeport Liquefaction Project

Thursday, Feb 16, 2012

Effective January 30, 2012, Freeport LNG Expansion, L.P. (Freeport LNG) and a joint venture comprised of Zachry Industrial, Inc. and CB&I Inc. (Zachry/CB&I Joint Venture) entered into a Front-End Engineering and Design Contract (FEED Contract) for the engineering and design of the Freeport Liquefaction Project near Freeport, Texas. Under the FEED Contract, the Zachry/CB&I Joint Venture will engineer and design three LNG liquefaction trains (each rated at 4.4 million tons per year) and corresponding pretreatment facilities to be located near the existing Freeport LNG Regasification Terminal that is owned and operated by Freeport LNG’s parent company, Freeport LNG Development, L.P. Within the three-train design, the Zachry/CB&I Joint Venture will develop a fixed price/fixed schedule proposal for both a one-train initial development and a two-train initial development. This optionality will provide Freeport LNG with the ability to choose the optimum size of the initial phase of the project based upon customer demand and financing considerations. In addition, the design of the three-train project will allow for the efficient expansion of additional liquefaction train(s) and pretreatment facilities after the initial development has commenced.

Zachry and CB&I are world-class engineering and construction companies, and each company has significant experience in the LNG industry, particularly along the U.S. Gulf Coast. Zachry was a member of the consortium that designed and constructed the Freeport LNG Regasification Terminal, thereby giving Zachry a thorough understanding of the infrastructure in the existing facility as well as the local area’s accessibility to labor and supplies. In 2010, CB&I completed the turnkey design, engineering and construction of a similarly-sized LNG liquefaction train near Lima, Peru utilizing technologies and design requirements similar to those anticipated for the Freeport Liquefaction Project. In addition, CB&I recently completed the design, engineering and construction of the Golden Pass LNG Terminal located near Sabine Pass, Texas.

Source: Business Wire

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