Freeport LNG Start Date Pushed Back

Freeport LNG Development L.P. has announced that it has completed a “detailed assessment” of alternatives for resuming operations at its liquefaction facility following an incident at the site on June 8.

In a statement posted on its website, the company noted that it has identified a recovery plan for reinstatement of partial operations that it believes ensures the long-term safety and integrity of the facility, provides recovery execution certainty, and minimizes procurement and performance testing risks.

The company said it is anticipated that initial production can commence in early to mid-November and ramp up to a sustained level of at least two billion cubic feet per day by the end of November, which Freeport highlighted represents over 85 percent of the export capacity of the facility. The company said the recovery plan will utilize Freeport LNG’s second LNG loading dock as a lay berth until loading capabilities at the second dock are reinstated in March 2023, “at which time we anticipate being capable of operating at 100 percent of our capacity”.

Freeport conceded that typical construction risks could impact the recovery plan. The company also revealed that it has engaged Kiewit Energy Group Inc to perform the engineering, procurement, and reconstruction activities necessary to implement Freeport LNG’s recovery effort.

“Freeport LNG continues to coordinate closely with representatives of the Pipeline Hazardous Materials Safety Administration, the Federal Energy Regulatory Commission, the U.S. Coast Guard and other applicable regulatory agencies to implement its recovery plan and corrective measures to ensure a safe and confident resumption of operations,” Freeport said in a company statement.

Earlier this month, Freeport revealed that it and the Pipeline Hazardous Materials Safety Administration had entered into a Consent Agreement related to the June 8 incident at Freeport LNG’s liquefaction facility. The obligations under the Consent Agreement are intended to ensure that Freeport LNG can safely and confidently resume initial LNG production and thereafter ultimately return to full operation of all liquefaction facilities, Freeport noted at the time.

Back in June, Freeport highlighted that it was estimated that the resumption of partial liquefaction operations would occur in early October 2022. At the time, the company was also continuing to target year-end for a return to full production.

An incident occurred at the Freeport LNG facility on Quintana Island at about 11.40 am on June 8, according to a statement posted on Freeport LNG’s official Facebook page. In a statement posted on its Facebook page on June 8, the Freeport police department noted that it was assisting with an “active explosion” at the LNG Plant in City of Quintana.

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