Freeport LNG Applies with FERC for Fourth LNG Train

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Researched by Industrial Info Resources (Sugar Land, Texas)--Freeport LNG Development LP (Houston, Texas) has applied with the Federal Energy Regulatory Commission (FERC) to site, construct and operate a fourth liquefied natural gas (LNG) production train at its LNG production and export terminal in Freeport, Texas. The company has three production trains under construction at the site. Industrial Info is tracking $112.5 billion in LNG projects along the Texas Gulf Coast.

Freeport broke ground on Train 1 of its terminal in late 2014, followed by Train 2 in early 2015 and Train 3 shortly thereafter. The trains are expected to come online sequentially, beginning in 2018. If Train 4 is given a financial green light, it would begin construction in 2018, with possible completion in 2021. All trains will be able to produce 5 million metric tons per year of LNG. Zachry Group (San Antonio, Texas) and Chicago Bridge & Iron Company (NYSE:CBI) (CB&I) (Gravenhage, Netherlands) are acting as engineering as engineering, procurement and construction (EPC) contractors on the project. For more information, see Industrial Info's project reports on Train 1, Train 2, Train 3 and Train 4 of the Freeport terminal.

Freeport became the third company to receive permission from the Department of Energy (DoE) to export LNG to countries without a free trade agreement (FTA) with the U.S. when the DoE granted permission for export from the first two trains in November 2014. The two previous companies to receive non-FTA permission were Cheniere Energy Incorporated (Houston, Texas) and Sempra Energy (NYSE:SRE) (San Diego, California).

Cheniere Energy (NYSE:LNG) is now the only current exporter of LNG from the U.S. as the company continues to ship LNG from its Sabine Pass terminal in Louisiana. Cheniere is planning a second terminal down the road from Freeport in Corpus Christi, Texas. Construction of trains 1 and 2 of the terminal began in 2015 and are expected to be completed in 2018 and 2019, respectively. The trains will have a production capacity of 4.5 million tons per year. The facility could eventually have a total of five production trains. For more information, see Industrial Info's project reports on Train 1 and Train 2. An additional three trains could be constructed at the Corpus Christi facility, each with a production capacity of 4.5 million tons per year. For more information, see project reports on Train 3, Train 4 and Train 5.

Sempra began construction of its facility in Cameron, Louisiana, in 2014. The project is expected to be completed in the first quarter of 2018 and will have three liquefaction trains, each capable of producing 5 million tons per year. CB&I is acting EPC firm on the project. For more information, see Industrial Info's project report.

Sempra is in the permitting stage for a two-train LNG production terminal in Port Arthur, Texas, that would have a total production capacity of 10 million tons per year. Sempra filed with FERC to site, construct and operate the facility in November last year. Sempra has received permission to export LNG to countries with a free trade agreement with the U.S., but is awaiting approval to export to countries without an agreement. For more information, see Industrial Info's project reports on Train 1 and Train 2 of the Port Arthur facility.

Many potential LNG producers are being forced to reevaluate their projects as global LNG spot prices have dropped significantly in recent years. While an uptick in the market is expected to occur eventually as more countries develop LNG import infrastructure, this could still be several years out.

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