Freeport LNG receives final FERC and DOE approvals

Freeport LNG Expansion, L.P. (Freeport LNG) has received final approvals for its proposed natural gas liquefaction and LNG export facility on Quintana Island near Freeport, Texas. On 13 November, the Federal Energy Regulatory Commission (FERC) denied pending rehearing requests and, on 14 November, Freeport received a final authorization from the Department of Energy (DoE) to export to Non-Free Trade Agreement countries.

Freeport LNG received conditional authorization from the DOE to export the entire contracted LNG production volume of the initial three trains of the liquefaction project. On 30 July 2014, Freeport LNG received FERC approval for the initial three train liquefaction project, and in October 2014, FERC granted Freeport LNG authorization to proceed with construction. Now, with receipt of an order from FERC denying pending rehearing requests and a final export authorization from DOE, Freeport anticipates closing on financing and beginning construction on the first two trains later this month. Financing and commencement of construction on the third train is expected in second quarter 2015.

Michael Smith, Chairman and CEO, Freeport LNG, commented: “We’re very pleased to have received the final two approvals needed to begin construction and operation of our three liquefaction trains. As I said at our ceremonial groundbreaking just last Monday, this project will have a significant economic impact on this region and our nation, and achieving these milestones is gratifying. We look forward to moving quickly towards financing close and start of construction”.

Freeport LNG awarded contracts to a joint venture between CB&I, Inc. and Zachry Industrial, Inc. to construct the initial two trains of the liquefaction project. The first two trains are anticipated to commence operations 45 and 50 months from start of construction, respectively, with the third train expected to be in operation approximately six months following the second train. Each liquefaction train has a nameplate design capacity of 4.64 million tpy. Approximately 13.2 million tpy of the production capacity of the three liquefaction trains has been contracted under use or pay liquefaction tolling agreements with Osaka Gas, Chubu Electric, BP Energy Company, Toshiba Corp. and SK E&S LNG, LLC.

Adapted from a press release by Emma McAleavey.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/18112014/freeport-lng-receives-approvals-1634/