Freeport LNG Development LP (FLNG) has asked the US Federal Energy Regulatory Commission (FERC) for a 3-year extension to put the 5-million tonne/year fourth train of its Quintana Island, Tex., liquefaction plant in service, moving the deadline to no later than May 17, 2026. This timeframe aligns with Department of Energy requirements which call for commencement of long-term exports of LNG from Train 4 to non-Free Trade Agreement countries by no later than May 2026.
FERC last year issued an order granting authorization under Section 3 of the Natural Gas Act authorizing FLNG to site, build, and operate a fourth natural gas liquefaction train and pretreatment unit, as well as interconnecting pipelines and utility lines to support additional liquefaction and export operations at its 15-million tpy, three-train plant (OGJ Online, May 17, 2019).
The order required FLNG to place Train 4 in service by May 17, 2023. Construction of Train 4 has not yet begun and, given the minimum 42-month period required to build it, it is not possible for FLNG to meet the in-service date established by the order, according to the company. FLNG said the inability to meet this schedule, along with other factors, is impeding its efforts to progress commercialization of Train 4. The company also noted that the current worldwide economic climate and depressed global LNG prices resulting from the coronavirus (COVID-19) pandemic, make it difficult to complete long-term contracts with potential customers, resulting in associated delays for LNG projects in the US and around the world.
In May 2019, Freeport LNG also selected KBR Inc. as the preferred bidder for the engineering, procurement, construction, and commissioning (EPC) contract for Train 4. KBR, however, recently announced it plans to refocus its core business mostly on government contracts and technology businesses and will exit the LNG EPC business. Accordingly, Freeport LNG must rebid the EPC contract before beginning construction of Train 4, which adds additional uncertainty as to the ultimate construction schedule.
FERC has recently granted similar extensions to Sempra Energy’s Cameron LNG and the Port Delfin LNG offshore liquefaction project, both in Louisiana.
