Freeport LNG Development LP is aiming to restart its Texas natural gas export facility in mid-December, spending the rest of the month finishing reconstruction work and fulfilling regulatory requirements.
The operator of the 2.38 Bcf/d liquefied natural gas export terminal previously guided that it could repair the damage from a June explosion and restart sometime by the middle of this month.
Representatives confirmed earlier this week that around 90% of the anticipated work was completed and would be finished by the beginning of December.
“We are committed to moving forward with an uncompromising safety focus and enhanced operational processes that will enable us to chart a safe, sustainable path forward to serve our customers and the broader LNG market as a whole,” CEO Michael Smith said.
Once the work is completed and approved by federal regulators for a restart, the company expects around 2 Bcf/d of production capacity could be restored by January. A restoration of full capacity could take until March, as Freeport ramps up each of its three trains in sequential order and a second loading dock is returned to service.
Speculation of a delay for Freeport’s restart has weighed on domestic natural gas prices over the past few weeks and added volatility to the global LNG supply outlook for winter.
The company filed two additional supplemental reports to federal regulators Thursday, adding to the pile of information shared since the beginning of the month following a request by officials.
The company filed its Root Cause Failure Analysis (RCFA) at the beginning of the month, which was published on Tuesday by the Pipeline and Hazardous Materials Safety Administration (PHMSA). In the report, an independent firm identified deficient procedures and human error as contributing factors to the explosion.
The RCFA is one of the steps Freeport has to accomplish before filing a formal request to restart. The PHMSA has said the request requires a thorough review of the work and documentation Freeport has accomplished since the middle of the year.
