May 16, 2019 / 6:53 PM / 2 months ago

U.S. FERC approves fourth train for Texas Freeport LNG export plant

    May 16 (Reuters) - The U.S. Federal Energy Regulatory
Commision (FERC) approved privately-held Freeport LNG's plan to
build and operate a fourth liquefaction train at its Freeport
liquefied natural gas export terminal in Texas:
    
    * Freeport said it expects the U.S. Department of Energy to
authorize Train 4 to sell LNG to non-Free Trade Agreement
countries later this quarter.
    * Earlier this week, KBR Inc         said Freeport picked
the engineering firm as the preferred bidder to build Train 4.
    * Freeport has said it could make a final investment
decision to build Train 4 during the second quarter with the
plant expected to enter service in 2023.
    * Freeport said Train 1 is on track to enter service in the
third quarter followed by Train 2 in the first quarter of 2020
and Train 3 in the second quarter of 2020.             
            
    * When Freeport started building the first three trains at
the $13 billion facility it projected the units would enter
service between the fourth quarter of 2018 and the fourth
quarter of 2019.             
    * McDermott International Inc         is the lead contractor
for the first three units at Freeport.
    * Freeport has said the first cargoes from the plant would
likely start in late July.
    * Each train at Freeport will have the capacity to produce
about 5 million tonnes per annum (MTPA) of LNG or around 0.7
billion cubic feet per day (bcfd) of natural gas. One billion
cubic feet is enough gas to supply about 5 million U.S. homes
for a day.
    * Freeport has said it has 20-year contracts to sell LNG to
Japanese gas companies Osaka Gas Co Ltd          and JERA - an
alliance between Japanese power companies Tokyo Electric Power
Co Holdings Inc          and Chubu Electric Power Co Inc
         - from Train 1, British oil major BP Plc        from
Train 2 and Japanese engineering firm Toshiba Corp          and
South Korean energy company SK E&S from Train 3.
    * Freeport also has a three-year deal to sell 0.5 MTPA of
LNG to multinational commodity trading firm Trafigura Group Pte
Ltd starting in July 2020.             
    * In addition, Freeport has said it is working on a 20-year
deal to sell 2.2 MTPA of LNG to a unit of Japanese trading firm
Sumitomo Corp          from Train 4.               

    
 (Reporting by Scott DiSavino
Editing by Marguerita Choy)
  
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