Freeport LNG to resume operations after June incident

The two parties have entered into a Consent Agreement related to the June 8 incident at Freeport LNG’s liquefaction facility. Namely, at approximately 11:40AM CT on June 8, 2022, an incident occurred at the Freeport LNG liquefaction plant on Quintana Island, Texas that resulted in the release of LNG, leading to the formation and ignition of a natural gas vapor cloud, and subsequent fire at the facility.

As reported previously, there were no injuries. The incident occurred in pipe racks that support the transfer of LNG from the facility’s LNG storage tank area to the terminal’s dock facilities located on the intracoastal side of Freeport LNG’s dock basin.

Under the agreement, the obligations aim to ensure that Freeport LNG can safely and confidently resume initial LNG production and thereafter ultimately return to full operation of all liquefaction facilities.

In the near term, the Consent Agreement includes certain corrective measures, many of which are currently underway, that Freeport LNG is to take to obtain PHMSA approval for an initial resumption of LNG production from its liquefaction facility.

Freeport LNG continues to believe that it can complete the necessary corrective measures, along with the applicable repair and restoration activities, in order to resume initial operations in early October

Those initial operations are expected to consist of three liquefaction trains, two LNG storage tanks and one LNG loading dock, which the company believes will enable delivery of approximately 2 BCF per day of LNG.

In addition to the repair and replacement of Freeport LNG’s physical infrastructure that was damaged in the incident, and as part of the corrective measures under the Consent Agreement, the company is evaluating and advancing initiatives related to training, process safety management, operations and maintenance procedure improvements, and facility inspections.