The Department of Energy has issued the two final authorizations (here and here) for Freeport LNG Expansion, L.P., and FLNG Liquefaction, LLC (Freeport), to export domestic liquefied natural gas (LNG) to countries with which the U.S. does not have a free trade agreement (FTA). The agency determined that, with record domestic production at 75.05 Bcf/d, the facility’s projected export rate of 1.4 Bcf/d would not increase domestic energy costs and was therefore consistent with the public interest.
The new Freeport LNG liquefaction facility and export terminal will be built on the site of the company’s existing Quintana Island, Texas, import facility, which was built at a time when the prospect of exporting domestically produced LNG was almost unimaginable. The liquefaction plant will include three trains, each with a capacity of 4.4 million metric tons per year, for a total liquefaction capacity of 1.8 billion cubic feet of gas per day. Natural gas will be delivered to the terminal through intrastate pipelines connected to the company’s pipeline and meter station at Stratton Ridge, Texas.
The company received approval in May 2013 from DOE to export 1.4 billion cubic feet of natural gas per day for 20 years, becoming only the second U.S. company to receive approval to export domestically produced natural gas to countries without an FTA. The company received clearance from DOE to export an additional 400 million cubic feet of LNG per day in November 2013.
With assistance from Andrew McNamee