Government approval is a significant milestone for constructing train 4 at US Gulf LNG export facility later this year
Smoothing the path to its expansion, Freeport LNG export facility in Quintana, Texas, received the go-ahead from the US Department of Energy (DOE) to sell the export of train 4 volumes to any country that does not have a free trade agreement with the US.
The announcement follows the approval this month by the US Federal Energy Regulatory Commission (FERC) to site, construct and operate train 4.
Freeport LNG’s train 4 is expected to add over 5 mta of LNG production to its existing project, increasing the total export capability of the four-train facility to over 20 mta. Approximately 13.5 mta of this capacity has been contracted under 20-year tolling agreements to Osaka Gas Trading & Export, JERA Energy America, BP Energy Company, Toshiba America LNG Corporation and SK E&S LNG. Approximately 0.5 mta has been contracted to Trafigura PTE under a three-year sale and purchase agreement commencing in 2020.
“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,” said Freeport LNG founder, chairman and chief executive Michael Smith. “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 startup in Q3 2019, and full three-train commercial operations anticipated by mid-2020.