Freeport asks U.S. for permission to put Train 3 at Texas LNG plant in service

Chiyoda

27/04/2020 17:13

April 27 (Reuters) - U.S. liquefied natural gas company
Freeport LNG asked the U.S. Federal Energy Regulatory Commission
(FERC) for permission to put the third liquefaction train at its
LNG export plant in Texas into service by April 30:
    
    * Each train at Freeport is designed to produce about 5
million tonnes per annum (MTPA) of LNG or around 0.7 billion
cubic feet per day (bcfd) of natural gas. One billion cubic feet
is enough gas to supply about 5 million U.S. homes for a day.
    * Train 1 started producing LNG in August 2019 and shipped
its first cargo in September, while Train 2 produced its first
LNG and shipped its first cargo in December.  urn:newsml:reuters.com:*:nL3N25V100
 urn:newsml:reuters.com:*:nL1N28G1AM
    * Freeport started operations as an LNG import facility in
2008.
    * When Freeport started building the first three trains at
the $13 billion facility, it projected the units would enter
service between the fourth quarter of 2018 and the fourth
quarter of 2019.
    * Units of McDermott International Inc  MDRIQ,PK , Chiyoda
Corp  6366.T  and Zachry Group built the first three trains at
Freeport.
    * Freeport has said it selected engineering firm KBR Inc
 KBR.N  as its preferred bidder to build a fourth liquefaction
train at the facility.
    * In March, Freeport said it would delay making a final
investment decision (FID) to build Train 4 after the coronavirus
caused global demand for gas to collapse, cutting gas prices to
record lows in Europe and Asia.  urn:newsml:reuters.com:*:nL1N2BG1QX
    * Prior to its announcement in March, the company had said
it planned to make a FID on Train 4 during the first quarter of
2020, which would have enabled the unity to enter service in
2023.
    * In mid-2019, a dozen North American developers, including
Freeport, said they planned to make FIDs by the end of the year.
But none of those projects are under construction. All of those
FIDs were delayed until 2020 or later.
    At the start of 2020, another dozen developers - some from
2019 - said they planned to make FIDs by the end of this year.
Currently, however, that total is down to just half a dozen, and
analysts said they expect only one or two of those projects to
actually go forward this year.  urn:newsml:reuters.com:*:nL2N2C40SZ

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC-Expansion of global LNG gasification and regasification
capacity    http://tmsnrt.rs/2mtY5CY
GRAPHIC-Growing global natural gas demand    http://tmsnrt.rs/2mtP90z
McDermott, Chiyoda and Zachry Group Introduce Feed Gas to Train
3 at Freeport LNG Project     urn:newsml:reuters.com:*:nPn5d6dkTa
Freeport LNG delays Train 4 decision at Texas export terminal
due to coronavirus     urn:newsml:reuters.com:*:nL1N2BG1QX
FACTBOX-North American liquefied natural gas export projects   
 urn:newsml:reuters.com:*:nL2N2C40SZ
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Scott DiSavino
Editing by Marguerita Choy)
 ((scott.disavino@thomsonreuters.com; +1 646 223-6072; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))
 
((For Refinitiv, formerly Thomson Reuters Supply Chain & Commodities Research (SC&CR), see: cpurl://apps.cp./cms/?pageid=usa-gas))