Fire-Closed Freeport Gas Export Terminal Again Delays Restart
Fire-Closed Freeport Gas Export Terminal Again Delays Restart
Abstract
August 24, 2022 Mary B. Powers KEYWORDS Freeport LNG / natural gas Order Reprints No Comments Freeport LNG's $13.5-billion natural gas liquefaction plant and export terminal in Texas, closed since a June 8 fire and explosion that damaged the facility, said it will not partially reopen until possibly mid-November, and not fully operate until next March-the third delay it has announced. The Aug, 23 notice of another delay for the facility, which accounts for at least 15% of U.S. LNG exports, caused naural gas futures to fall more than 5%. The Houston-based company also said it has hired Kiewit Construction will perform engineering, procurement and construction needed to restore operation of the plant on Quntana Island near Galveston. Freeport LNG said it has completed a detailed assessment of alternatives for resuming partial operations and has developed a recovery plan that "Ensures the long-term safety and integrity of the facility and provides recovery execution certainty."The company also noted that typical construction risks could affect the recovery plan. Freeport plans to use the plant's second LNG loading dock to allow partial operations, which had been set for early October, to possibly reach 85% before year eend. The company said Aug. 3 that it had entered into a consent agreement with the U.S. Transportation Dept.'s Pipeline Hazardous Materials Safety Administration, which it said would ensure that the plant can safely resume initial production and return to full operation. Operation of the LNG storage tanks, inspection and testing procedures for all control systems had to be evaluated along with assessment of worker qualifications and training. "Continued operation of the export facility without corrective measures may pose an integrity risk to public safety, property or the environment," the agency said.