US FERC okays expansion of Freeport LNG export terminal

The US Federal Energy Regulatory Commission (FERC) has approved the planned expansion of Freeport LNG’s export terminal on Quintana Island near Freeport, Texas.

The approval allows Freeport LNG to construct and operate its fourth natural gas liquefaction train at the LNG terminal.

Freeport LNG expects to receive approval from the US Department of Energy to begin the export of production volumes from Train 4 later this quarter.

Once operational in 2023, the fourth train is anticipated to add more than five million tonnes per annum (Mtpa) of LNG production to the existing facility.

The expansion will allow the total export capability of the terminal to increase to more than 20Mtpa.

Freeport LNG founder, chairman and CEO Michael Smith said: “This is an important milestone in the continued growth of Freeport LNG. Having FERC’s approval in hand brings us one significant step closer to our goal of moving ahead with Train 4 construction later this year.”

The company has secured commitments for 13.5Mtpa of the 20Mtpa capacity under 20-year tolling agreements with Osaka Gas Trading & Export, JERA Energy America, BP Energy Company, Toshiba America LNG, and SK E&S LNG.

Furthermore, a sale and purchase agreement was signed with Trafigura PTE to supply around 0.5Mtpa for a three-year period commencing next year.

Train 1 is expected to begin commercial operations in the third quarter of this year, while full three-train commercial operations are slated for mid-2020.

Earlier this week, Freeport LNG chose KBR as the preferred bidder for the engineering, procurement, construction, and commissioning (EPC) contract for Train 4.