Freeport LNG receives FERC approval for Train 4

Freeport LNG Development LP reported obtaining approval from the US Federal Energy Regulatory Commission to site, construct, and operate its fourth natural gas liquefaction train, which will be integrated into its existing gas liquefaction and LNG export facility on Quintana Island near Freeport, Tex.

May 17th, 2019

Freeport LNG Development LP reported obtaining approval from the US Federal Energy Regulatory Commission to site, construct, and operate its fourth natural gas liquefaction train, which will be integrated into its existing gas liquefaction and LNG export facility on Quintana Island near Freeport, Tex.

Freeport LNG expects approval from the US Department of Energy for the export of Train 4 volumes to non-free trade agreement countries later this quarter.

Freeport LNG’s Train 4 is expected to add more than 5 million tonnes/year of LNG production to its existing project, increasing the total export capability of the four-train facility to more than 20 million tpy.

About 13.5 million tpy of this capacity has been contracted under 20-year tolling agreements to Osaka Gas Trading & Export LLC, Jera Energy America LLC, BP Energy Co., Toshiba America LNG Corp., and SK E&S LNG LLC. Also, about 500,000 tpy has been contracted to Trafigura Pte. Ltd. under a 3-year sale and purchase agreement starting in 2020.

Michael Smith, Freeport LNG founder, chairman, and chief executive officer said that with FERC’s approval now in hand, the company is closer to moving ahead with Train 4 construction “later this year.”

Train 4 is expected to start operations in 2023. Freeport LNG’s export facility currently consists of three liquefaction trains, with Train 1 scheduled for commercial startup in this year’s third quarter, and full three-train commercial operations expected by mid-2020.

Earlier this month, Freeport LNG selected KBR Inc. as the preferred bidder for the engineering, procurement, construction, and commissioning contract for Train 4 (OGJ Online, May 13, 2019).

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