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Freeport LNG receives DOE approval for Train 4 exports to non-FTA countries

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LNG Industry,

Freeport LNG has announced that it has received approval from the US Department of Energy 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 liquefaction and export facility on Quintana Island near Freeport, Texas. This latest announcement follows the recent news that the company has received approval from the Federal Energy Regulatory Commission (FERC) to site, construct and operate its fourth train.

According to the statement, it is expected that Train 4 will add more than 5 million tpy of LNG production to the project, increasing the total export capability of the facility to over 20 million tpy. Freeport LNG claims that 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 Co., Toshiba America LNG Corp., and SK E&S LNG, LLC, and approximately 0.5 million tpy has been contracted to Trafigura PTE LTD under a three-year sale and purchase agreement (SPA) commencing in 2020.

Michael Smith, Founder, Chairman and CEO, Freeport LNG, said: “We appreciate the Department of Energy'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.

“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.”

According to the statement, Train 4 operations are expected to start in 2023. Freeport LNG’s export facility currently comprises three liquefaction trains, with Train 1 scheduled for commercial startup in 3Q19, and full three-train commercial operations anticipated by mid-2020.

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