The Federal Energy Regulatory Commission Thursday approved the construction of the Train 4 expansion at the Freeport LNG terminal on Quintana Island near Freeport, Texas, Kallanish Energy reports.
The Train 4 project is an expansion of the liquefaction project currently under construction at the Freeport LNG terminal. It involves construction of a liquefaction unit similar to Freeport’s other three units at the site, as well as associated pipelines, storage vessels and related facilities.
The project will allow Freeport LNG to liquefy for export the equivalent of an additional 0.74 billion cubic feet per day of natural gas from the site.
“I’m proud of the efforts by the Commission and its staff to process today’s and our previous LNG orders,” Ferc chairman Neil Chatterjee said.
Ferc in the last four months has approved four LNG export projects.
Freeport LNG’s Train 4 is expected to add over 5 million tonnes per annum (Mtpa) of LNG production to its existing project, increasing the total export capability of the four-train facility to over 20 Mtpa.
Roughly 13.5 Mtpa of this capacity has been contracted under 20-year tolling agreements to Osaka Gas Trading & Export, JERA Energy America, BP Energy Co., Toshiba America LNG Corp., and SK E&S LNG.
Another roughly 0.5 Mtpa has been contracted to Trafigura Pte Ltd. under a three-year sale and purchase agreement beginning in 2020.
“This is an important milestone in the continued growth of Freeport LNG,” said Michael Smith, founder, chairman and CEO 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.”
Train 4 operations are slated to begin 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.
Approval from the U.S. Department of Energy for the export of Train 4 volumes to non-Free Trade Agreement countries is anticipated later this quarter.
This post appeared first on Kallanish Energy News.