Freeport LNG delays Train 4 decision at Texas export terminal due to coronavirus

Chiyoda

23/03/2020 20:31

March 23 (Reuters) - U.S. liquefied natural gas company
Freeport LNG said on Monday it would not make a final investment
decision (FID) to build the fourth train at its export terminal
in Texas at this time due to the coronavirus.
    "Freeport is focused on our current operations and the
health and wellbeing of our employees," Freeport spokeswoman
Heather Browne said in an email, noting "Train 4 is a
shovel-ready project once we can finalize the necessary
agreements with potential customers."
    She noted, however, "At this time, such customers are also
focused on current operations and therefore we cannot predict
when they will re-engage for their future LNG needs."
    In the past, Freeport said it hoped to make a decision on
Train 4 during the first quarter, which would have enabled the
unit to enter service in 2023.  urn:newsml:reuters.com:*:nL2N24B19C
    Separately, Freeport said the third train at the plant
remained on track to produce its first LNG later this month.
 urn:newsml:reuters.com:*:nPn5d6dkTa
    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
    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 Train 4.
    Even before the coranavirus started to cut global economic
growth and demand for energy, about a dozen North American
energy firms, including Freeport, had already put off making
FIDs to build new LNG export projects from 2019 to 2020.
 urn:newsml:reuters.com:*:nL1N2BG221
    Mild winter weather in Europe and Asia, record gas
stockpiles in Europe, the U.S.-China trade war and the startup
of several new export terminals last year had already cut global
demand for more gas.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC-Expansion of global LNG gasification and regasification
capacity    http://tmsnrt.rs/2mtY5CY
GRAPHIC-Growing global natural gas demand    http://tmsnrt.rs/2mtP90z
Texas Freeport LNG export trains to enter service Sep 2019-May
2020     urn:newsml:reuters.com:*:nL2N23K13D
Freeport LNG completes work on Train 1 at Texas export plant   
 urn:newsml:reuters.com:*:nL2N27A16D
McDermott, Chiyoda and Zachry Group Announce First Liquid from
Freeport LNG Train 2     urn:newsml:reuters.com:*:nPnb3mJjZa
Freeport LNG starts Train 2 production at Texas export plant   
 urn:newsml:reuters.com:*:nL1N28G1AM
McDermott, Chiyoda and Zachry Group Introduce Feed Gas to Train
3 at Freeport LNG Project     urn:newsml:reuters.com:*:nPn5d6dkTa
FACTBOX-North American liquefied natural gas export projects   
 urn:newsml:reuters.com:*:nL1N2BG221
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Scott DiSavino; Editing by Tom Brown)
 ((scott.disavino@thomsonreuters.com; +1 646 223-6072; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))
 
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