The terminal site is located at one of the oldest and most historic port sites in Texas. Situated approximately 70 miles from Houston, the terminal is six miles from open water off a 45-foot deep ship channel. This approach is one of the shortest of any LNG terminal currently operating or under construction in North America. The terminal's berth is sufficient to accommodate all existing LNG carriers.

In 2005, when construction of the terminal started, forecasts envisioned a major increase in US LNG imports. Since June 2008, when the terminal entered commercial operations, the North American natural gas industry has gone through a sea change—the shale gas revolution. Now, natural gas resource estimates by the DOE’s Energy Information Administration and private analysts indicate that the U.S. has sufficient natural gas supplies for one hundred years or more. This increase in domestic natural gas resources has resulted in a drop in prices to the point at which US natural gas prices are among the lowest in the world. Freeport LNG believes that the abundance of domestic reserves and low prices mean that the US gas market itself should become a source for LNG export. Given this dramatic reversal of market conditions, Freeport LNG has launched its natural gas liquefaction project, proposing to add approximately 12 million metric tons per year (1.8 Bcf per day) of liquefaction capability to its Quintana Island terminal facilities.

Freeport LNG terminal benefits from a supportive local community on Quintana Island and from Port Freeport itself. With a substantial nearby petrochemical industry, area residents are comfortable with large-scale energy projects. Freeport LNG Development, L.P., has also committed itself to careful environment management of the site including wetlands mitigation and the protection of native and migrating birds that make the island their home.