FERC Gives Green Light to Freeport Liquefaction Project

The U.S. Federal Energy Regulatory Commission (FERC) authorized Freeport LNG Development, L.P. to site, construct, and operate facilities to liquefy and export domestic natural gas from its existing liquefied natural gas (LNG) import terminal located near the city of Freeport, Brazoria County, Texas.

The Freeport Liquefaction Project includes the construction and operation of a liquefaction plant with three trains, each with a capacity of 4.4 million metric tons per annum, for total liquefaction capacity of 1.8 Bcf/d. The project also includes pretreatment plant facilities that will interconnect with several pipelines, as well as facilities to allow bi-directional flow of gas through the existing Freeport Pipeline.

In addition, FERC authorized Freeport LNG’s Phase II Modification Project that would revamp the previously authorized, but unconstructed Phase II Project.

The Phase II Modification Project comprises three major components: reorientation of the Phase II dock, modification of the transfer facilities, and modification of access roads at the terminal.

The two projects would be constructed together at Freeport’s existing Quintana Island terminal.

The order adopts FERC environmental staff’s recommendations by requiring the company to adhere to more than 80 conditions to mitigate potential adverse environmental impacts.

The U.S. Department of Energy has conditionally approved Freeport LNG’s export of gas to both Free Trade Agreement and non-Free Trade Agreement countries.

This is the third LNG export project authorized by FERC. There are currently 10 LNG export projects that have filed formal applications pending before the Commission, and there are three LNG export projects in the pre-filing process.

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Press Release, August 1, 2014