TransLogistics

Transport and Logistics Network

Freeport LNG secures more time to build fourth train

Last month, Freeport LNG's units sought from FERC[1] an approximately 40-month extension of time for the Train 4 project. "Based on the facts presented in the request and the case record, the applicants are granted an extension of time until and including December 1, 2031, to complete construction of their Train 4 Project and make it available for service," FERC said in a filing dated July 17. In October 2022, FERC granted[2] Freeport LNG a second extension to complete construction and place the Train 4 project in service, until August 1, 2028.

However, in June the same year, less than a month after submitting the second extension request, an explosion [3]occurred at the LNG export terminal, which resulted in the entire terminal being taken offline. In May this year, FERC authorized[4] Freeport LNG to return the terminal to full service, including the third LNG tank. The LNG terminal operator recently completed its debottlenecking project, which increased the terminal's production capacity from an excess of 15 mtpa to just over 16.5 mtpa.

Freeport's planned Train 4 would add an additional 25 percent LNG production capacity.

£111 million

Freeport told FERC in its extension request in June that it is "actively marketing the Train 4 project and engaging in discussions with a number of potential offtakers, including those in more recently emerging markets and in markets with renewed strategic emphasis on securing long-term US LNG supply."

"Although Freeport intends to move forward with pursuing financing and commencement of construction on the Train 4 project as soon as practicable, given the anticipated minimum 48-56 month period required to construct the Train 4 project, it is not possible for Freeport to meet the current August 1, 2028 in-service date deadline," it said.

Freeport said it has attempted in "good faith" to meet the in-service deadline, obtaining and maintaining all required permits and expending approximately £111 million in capital to progress the development project.

References

  1. ^ sought from FERC (lngprime.com)
  2. ^  granted (lngprime.com)
  3. ^ explosion  (lngprime.com)
  4. ^  authorized (lngprime.com)