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In October 2022, FERC granted Freeport LNG a second extension to complete construction and place the Train 4 project in service, until August 1, 2028.
However, in June the same year, less than a month after submitting the second extension request, an explosion occurred at the LNG export terminal, which resulted in the entire terminal being taken offline.
In May this year, FERC authorized Freeport to return the terminal to full service, including the third LNG tank.
The LNG terminal operator recently completed its debottlenecking project, which increased the terminal’s production capacity from an excess of 15 mtpa to just over 16.5 mtpa.
Freeport’s planned train 4 would add an additional 25 percent LNG production capacity.
Freeport told FERC in its extension request dated June 18 that it is “actively marketing the Train 4 project and engaging in discussions with a number of potential offtakers, including those in more recently emerging markets and in markets with renewed strategic emphasis on securing long-term US LNG supply.”
“Although Freeport intends to move forward with pursuing financing and commencement of construction on the Train 4 project as soon as practicable, given the anticipated minimum 48-56 month period required to construct the Train 4 project, it is not possible for Freeport to meet the current August 1, 2028 in-service date deadline,” it said.
According to the LNG terminal operator, the inability to meet this schedule is impeding, and will continue to impede, Freeport’s efforts to commercialize the project and structure the complex financing associated with reaching a final investment decision.
Certainty regarding Freeport’s ability to complete the project construction by the in-service deadline is “essential” to commercialization of the project.
$111 million
Freeport said it has attempted in “good faith” to meet the in-service deadline, obtaining and maintaining all required permits and expending approximately $111 million in capital to progress the development project.
However, as a result of the June 8 Incident, substantial progress on the project was delayed for several years, rendering Freeport unable to meet the August 1, 2028 in-service deadline, the company said.
Nevertheless, while June 8 Incident-related restoration activities were ongoing, Freeport
continued to develop the project.
In this regard, Freeport has maintained a valid engineering, procurement and construction contract for the Train 4 project with Kiewit Energy, Freeport’s contractor for restoration of the terminal, and has continued to engage with Kiewit for assistance with development of the project, it said.
“Given the foregoing, Freeport hereby requests that the Commission grant an approximately 40 month extension of time so that it may construct and place the Train 4 project in service by no later than December 1, 2031.
To assist with the timely commercialization of the project, Freeport requests that the regulator issues an order on the instant request for an extension of time by no later than July 18, 2025.