The Economics of Big U.S. LNG Export Facilities

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Michael S. Smith

We spotted a fascinating article on the Forbes magazine website about Freeport LNG, which is fed (in part) by Marcellus/Utica molecules traveling through the Williams Transco Gulf Connector pipeline (see Williams Gulf Connector Goes Online – M-U Gas to Corpus Christi?). The article is about Freeport’s founder/builder/CEO, Michael S. Smith. However, it is some of the ancillary information woven into the article revealing the economics of the facility that caught our attention. How much money does it cost to build these plants? How much money do they make? And how long does it take to begin turning a profit?

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