Freeport LNG Development, L.P., operates one of the first LNG terminals built in the United States after more than a 20-year hiatus in LNG terminal development. The storage and regasification facility is located on Quintana Island, about 70 miles south of Houston, Texas.

The Freeport LNG site is located approximately six miles from open water off a ship channel that is maintained at a depth of 45 feet. This six-mile approach is one of the shortest of any LNG terminal currently operating or under construction in North America. FLNG has fully executed a 30-year site lease, which provides for extensions, with Port Freeport. In January 2005, FLNG commenced construction of what is referred to as “Phase I” of the Freeport LNG project. Phase I includes two 160,000 cubic meter LNG storage tanks of full containment design and one piled marine dock capable of handling LNG vessels in excess of 200,000 cubic meters—large enough to accommodate the largest tankers in the LNG fleet today. The terminal utilizes seven vaporization trains to achieve a peak send-out capacity of more than 2.0 Bcf per day.

The Freeport terminal location has favorable economic, geographic and infrastructure characteristics. Developers of LNG terminals are usually challenged to find an appropriate industrial site in a port with a sufficiently deep channel that is situated in close proximity to a pipeline system. Freeport provides all of these characteristics; it is located near two large natural gas trading hubs (Katy and the Houston Ship Channel) and is connected to a vast network of intrastate and interstate natural gas pipelines.

Firm capacity is fully contracted under three separate long-term terminal use agreements (TUAs) with ConocoPhillips, The Dow Chemical Company, and Mitsubishi Global Gas Corporation.