Freeport LNG Development LP on Tuesday won approval from federal regulators to restart commercial operations and said it would ramp up to 2 Bcf/d of production, enough to meet its long-term contracts in the coming weeks.
The Federal Energy Regulatory Commission authorized full service to resume on two liquefaction trains eight months after an explosion and fire knocked the terminal offline. One of those trains has already been restarted, but needed Tuesday’s authorization to resume liquefaction operations. The third and final train require additional approval to restart.
Freeport, on the upper Texas coast, said initial operations would utilize two of its three storage tanks and one of two berths for loading ships with liquefied natural gas. The second dock and third storage tank are expected to return to service in May, at which point the facility could resume its full 2.38 Bcf/d of LNG production.
Before the incident, Freeport exported roughly 15% of all U.S. LNG.
“Returning to liquefaction operations is a significant achievement for Freeport LNG," said CEO Michael Smith. "Over the past eight months, we have implemented enhancements to our processes, procedures and training to ensure safe and reliable operations, and significantly increased staffing levels with extensive LNG and petrochemical operating experience to reduce overtime, enhance operational excellence, and improve quality assurance and business performance.”
The facility on Feb. 11 started loading vessels using LNG from its storage tanks. It has exported three partial cargoes since then.
Freeport was ordered to meet a number of regulatory requirements before commercial operations could restart. Federal regulators said the incident was likely caused by an overpressured stretch of piping in the facility’s LNG transfer system.
