FLNG Liquefaction LLC, a subsidiary of Freeport LNG Expansion LP (Freeport LNG) entered into definitive agreements for the roughly-$3.9 billion debt financing of capital for the development of Freeport LNG's first train facility (Train One) at its proposed Quintana Island facility.

The natural gas liquefaction and loading facility is near Freeport, Texas, Freeport LNG said Oct. 29.

The financing is provided by Japan Bank for International Cooperation (JBIC), the Bank of Tokyo-Mitsubishi UFJ Ltd., Sumitomo Mitsui Banking Corp., Mizuho Bank Ltd., Sumitomo Mitsui Trust Bank Ltd., Mitsubishi UFJ Trust and Banking Corp. and the Tokyo branch of ING Bank.

The banks’ portion of the loans is insured by Nippon Export and Investment Insurance, Freeport LNG added.

Osaka Gas Co. Ltd. (OTC: OSGSF) and Chubu Electric Power Co. Inc. (OTC: CHUEF) invested about $1.2 billion for Train One’s development.

"We are excited to announce our partnership with Japanese governmental institutions to support the financing needs of the Freeport LNG liquefaction facility and to become a key contributor to the long-term diversification and security of energy supplies to Japanese utilities. We look forward to commencing construction of the initial two trains of the liquefaction project in the coming weeks and beginning commercial exports in 2018, " said Michael S. Smith, Freeport LNG’s CEO.

Freeport LNG noted that it will report the execution of definitive agreements for Train Two, a second facility, by another subsidiary, FLNG Liquefaction 2 LLC. All of the agreements will allow Freeport LNG to close initial funding and start building the facility’s first two trains after conditions from the U.S. Federal Energy Regulatory Commission and the U.S. Department of Energy are met.

The close of financing and beginning of construction is scheduled for the first half of 2015, the company added. Each liquefaction train has capacity for about 4.6 million tonnes per year. Of that amount, about 13.2 million tonnes per year were contracted under use-or-pay liquefaction tolling agreements with Osaka Gas, Chubu Electric, BP Energy Co., Toshiba Corp. and SK E&S LNG LLC.

Macquarie Capital is Freeport LNG's financial adviser for Train One. White & Case is Freeport LNG's finance counsel.