Freeport LNG May Partially Resume Operations in October after U.S. Regulator Intervenes

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Researched by Industrial Info Resources (Sugar Land, Texas)--Freeport LNG (Houston, Texas) said Thursday it is targeting a partial resumption of its liquefaction operations in early October as it cooperates with the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA). The federal pipeline regulator said it found unsafe conditions and will not allow Freeport LNG to restart the plant until an outside analysis is complete.

Located in Quintana, Texas, the 15 million-ton-per-year facility was taken offline on June 8 following an explosion and fire.

The PHMSA said that "it appears that continued operation of Freeport's LNG export facility without corrective measures may pose an integrity risk to public safety, property, or the environment."

In its notice to Freeport LNG, the regulator cited "the characteristics of the geographical area where the LNG export facility is located including its proximity to an ecologically sensitive area, the circumstances that resulted in the explosion and associated fire, and the likelihood that the issues could affect the safety of other areas of the LNG facility..."

Freeport LNG said it was cooperating with the PHMSA and other government agencies "to obtain the necessary approvals to safely restart operations. A comprehensive review by Freeport LNG is already underway to ensure that all necessary corrective actions are identified and fully implemented prior to resuming operations."

The company continued, "Currently, it is estimated that the resumption of partial liquefaction operations will be early October 2022. With commencement of such operations, we expect to be able to deliver substantially all baseload production volumes. At this time, we continue to target year-end for a return to full production."

In its preliminary findings, the PHMSA said, "Although the root cause of the failure has yet to be confirmed, preliminary evidence suggests that an isolated pressure safety valve created an overpressure situation in 300 feet of vacuum insulated piping. The 300 feet of pipe was subjected to an overpressure situation, which burst the pipe and allowed LNG and methane to be released into the facility. The sudden release of LNG and methane from the piping caused a subsequent explosion and fire that damaged piping and components in the plant."

An estimated 12 million cubic feet of LNG was reported to be released within the facility, the PHMSA said. No one was injured by the fire.

The PHMSA said Freeport engaged a third-party consultant, IFO Group, to conduct a root cause failure analysis of the explosion. The regulator called for a remedial work plan that includes a procedure or process to determine if conditions similar to those contributing to the explosion are likely to exist elsewhere in the facility, and a plan to test and inspect all pressure safety valves prior to returning to normal operations.

As such, it could be 90 days until Freeport LNG is allowed to resume partial operations. Subscribers to Industrial Info's Production Plant Database can click here for the plant profile.

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