The US Federal Energy Regulatory Commission (FERC) has extended the time that the Freeport LNG has to complete its expansion project (T4) from May 2026 to August 2028.
Freeport LNG had informed the regulator that the expansion project delayed by the replacement of its main EPC contractor [KBR] and the COVID-19 pandemic affecting on the global supply chain and LNG demand.

 

According to the Global LNG Database®, the FERC had already approved construction of the 5.1 MMT/Y fourth train in May 2019, requiring Freeport to finish the train by May 2023. In September 2020, the commission extended the time Freeport had to build the train until May 2026.
As the operator will need 48 to 56 months to complete the new train, it is impossible to meet the previous FERC deadline of May 2026 because it has not yet started construction of the fourth train.
KBR was initially selected as preferred bidder; however the engineering company has said that it is quitting the LNG business, saying “lump-sum construction risk is completely off the table.”
Freeport LNG said it has launched this competitive bidding process in early May 2022 with “several world-class engineering and construction companies” in order to receive firm price and schedule proposals for the Train 4 project in early fourth quarter.

 

Freeport LNG has said it is “actively marketing Train 4 project capacity to a number of potential off-takers, particularly in European markets, and is in active negotiations with several potential customers.”
The on-stream three trains of the 13.2 MMT/T Freeport LNG plant at Quintana Island, Southwest of Houston, Texas, supplier about 20% of the US LNG, has been out of services following the explosions in June.

 

According the Global LNG Contracts Database, longterm off-takers of the Freeport LNG are Osaka Gas 2.2 MMT/Y, Jera 2.2 MMT/Y, BP 4.4 MMT/Y, TotalEnergies 2.2 MMT/Y and SK E&S 2.2 MMT/Y.

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