Freeport - LNG Development, US
Taking US gas global for Freeport LNG Development
The shale gas revolution has fundamentally changed the US gas market, with current estimates suggesting the country has enough natural gas reserves to last 100 years. The increase in domestic natural gas resources has caused prices to fall, creating an opportunity to export US gas in the form of liquefied natural gas (LNG). Freeport LNG Development, L.P. operates a world-class LNG receiving and regasification terminal in Texas.
Location: United States
Date started: 2010
Completion date: Ongoing
Client type: Oil and gas
Key services: Cost and commercial management, controls and performance
About the programme
In 2010, the business launched a multibillion-dollar natural gas liquefaction project, to enable it to export LNG. Freeport LNG appointed us to provide a comprehensive, fully integrated project controls and cost management service, helping reduce the risk and potential impact of cost and schedule overruns, while optimising investment for the project.
Having Turner & Townsend work jointly with our advisors to define the project cost not only gave us the confidence required to negotiate and finalise the contract price, but also allowed us to secure significant savings on such costs within the budget.
Making the difference
- Enabling investment: having been brought in at an early stage, we reassured Freeport LNG that the complex multibillion-dollar scheme was being managed in a controlled and integrated manner. This helped enable them to achieve a positive final investment decision.
- Defining and reducing costs: our experts supported Freeport LNG’s management team to accurately position the project budget and assist negotiations with contractors, driving cost efficiencies from the start.
- Demonstrating control: through our extensive experience supporting LNG projects, we closely manage the schedule and costs by implementing best practice tools and processes.