The U.S. Federal Energy Regulatory Commission (FERC) approved a plan by Freeport LNG to site, construct and operate a fourth natural gas liquefaction train, to be integrated into an existing natural gas liquefaction and LNG export facility on Quintana Island near Freeport, Texas.

Department of Energy approval to export Train 4 production to non-Free Trade Agreement countries could come later this quarter.

A fourth train will be added to the existing facility. Credit: Freeport LNGFreeport LNG’s Train 4 is expected to add over 5 million tonnes per annum (mtpa) of LNG production to its existing project. The addition would increase the total export capability of the four-train facility to more than 20 mtpa.

Around 13.5 mtpa 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. Around 0.5 mtpa has been contracted to Trafigura PTE LTD under a three-year sale and purchase agreement that begins in 2020.

Train 4 operations could be underway in 2023. The export facility currently consists of three liquefaction trains, with Train 1 scheduled for commercial startup in Q3 2019. Full commercial operations are expected by mid-2020. The facility would rank among the world's top 5 LNG producers once Train 4 is completed.

Within the scope of the Train 4 expansion, developers also plan to build and operate new infrastructure at their existing natural gas pretreatment facility, including a new pretreatment unit consisting of systems to filter the feed gas and remove carbon dioxide, sulfur compounds, mercury and water; a unit to extract natural gas liquids; electric compressor units; and storage vessels. Other facilities include spill containment systems, a tank storage area, pipe racks and plant piping, inlet and outlet compression, and associated utilities.

In addition, the developers plan to build and operate a 10.6-mile-long, 42-inch-diameter pipeline connecting the waterside terminal facilities, the pretreatment facility and an existing meter station.

Gas for the Train 4 Project will be received from interconnections with existing pipeline systems, such as Dow Pipeline Co., Kinder Morgan Texas Pipeline, L.P., Brazoria Interconnector Pipeline and Gulf South Pipeline Co., LP. Once treated, the gas will be compressed and transported to the terminal facilities on Quintana Island for liquefaction and export by ship through the Freeport Harbor Channel.

Freeport LNG Development, L.P. was formed in 2002. The terminal started LNG import operations in June 2008 and is scheduled to begin LNG export operations in 2019. Freeport LNG’s limited partnership interests are held by Michael Smith, Global Infrastructure Partners and Osaka Gas Co., Ltd.