Freeport LNG Begins Commercial Exports

freeport LNG
Photo credit: Freeport LNG Development, L.P.

Freeport LNG become the latest terminal to begin exporting U.S.-produced natural gas to overseas markets. 

Freeport LNG announced Monday it has commenced commercial operations of the first of three LNG trains planned for the Quintana Island terminal located near Freeport, Texas on the Gulf on Mexico. 

The facility shipped its first commissioning cargo in September and Freeport LNG now says the first commercial cargo was shipped December 8, 2019. 

Freeport’s Train 2 is currently undergoing commissioning work and is expect to begin operating im January 2020. Train 3 is planned to be online in May 2020. Combined, the three trains will capable of producing in excess of 15 million tonnes of LNG per year. 

A fourth train, planned to be five million tons, is also under development with a Final Investment Decision expected in the first quarter of next year. 

Freeport LNG Development was formed in 2002 to develop, own and operate an LNG terminal on Quintana Island, near Freeport, Texas. The terminal started LNG imports in June 2008. 

The terminal touted as the largest fully electric motor drive natural gas liquefaction plant in the world, which can reduce emissions by over 90% compared to plants using combustion turbines.

Approximately 13.5 mtpa of Freeport LNG’s capacity has been contracted under 20-year tolling agreements to Osaka Gas Trading & Export, LLC, JERA Energy America, LLC, BP Energy Company, Toshiba America LNG Corporation, and SK E&S LNG. Another 0.5 mtpa has been contracted to Trafigura PTE LTD under a 3-year sale and purchase agreement commencing in 2020.

Freeport LNG now becomes the fifth export terminal in operation in the contiguous United States along with Sabine Pass LNG in Texas, Cove Point LNG in Maryland, Corpus Christi LNG in Texas, and Cameron LNG in Louisiana. 

Freeport LNG’s limited partnership interests are held by Michael Smith, Global Infrastructure Partners, and Osaka Gas Co., Ltd.