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Freeport LNG receives DOE exports approval

Published by , Editorial Assistant
Hydrocarbon Engineering,

Freeport LNG today announced it has received approval from the US Department of Energy (DOE) for the export of Train 4 volumes to non-free trade agreement countries. Freeport LNG’s fourth liquefaction train is part of the company’s existing natural gas liquefaction and LNG export facility on Quintana Island near Freeport, Texas. The company recently received approval from the Federal Energy Regulatory Commission (FERC) to site, construct and operate its fourth train.

Freeport LNG’s Train 4 is expected to add over 5 million tpy of LNG production to its existing project, increasing the total export capability of the 4-train facility to over 20 million tpy. Approximately 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 Company, Toshiba America LNG Corp., and SK E&S LNG, LLC, and approximately 500 000 tpy has been contracted to Trafigura PTE LTD under a 3-year sale and purchase agreement commencing in 2020.

“We appreciate the DOE’s swift approval, closely coupled with the recent FERC approval, which enables us to further advance our project development and marketing efforts for Train 4,” said Michael Smith, Founder, Chairman and CEO, Freeport LNG. “Having DOE’s approval marks another significant milestone for Freeport LNG, which brings us one step closer to our goal of moving ahead with Train 4 construction later this year.”

Train 4 operations are anticipated to commence in 2023. Freeport LNG’s export facility currently consists of three liquefaction trains, with Train 1 scheduled for commercial start-up in 3Q19, and full three-train commercial operations anticipated by mid-2020. Under 3-train operations, Freeport LNG’s facility will rank seventh in current global liquefaction production capacity, with the facility rising to become the world’s fifth largest LNG producer once Train 4 is completed.

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