Page 12 - GLNG Week 31 2022

GLNG AMERICAS GLNG

Freeport LNG to resume

operations in October

TERMINALS A US regulator this week gave approval for Free- the facility’s four liquefaction trains as well as
port LNG to partially resume operations follow- two LNG storage tanks and one loading dock,
ing an explosion and a fire in June. enabling the company to achieve 2bn cubic feet
The operator of the 15mn tonne per year (57mn cubic metres) per day of LNG, just shy
(tpy) facility received consent from the Pipeline of its capacity, and enough to satisfy long-term
and Hazardous Materials Safety Administra- supply deals with customers.
tion (PHMSA), allowing it to return to action While Freeport LNG had anticipated an
in October at almost full capacity, pending the October restart, the speed at which it will resume
implementation of corrective measures. This came as something of a surprise, putting strain
includes providing the PHMSA with weekly on US gas inventories. Brayton Tom, a senior
updates and filing a root cause analysis relating risk manager for energy at StoneX Group, told
to the explosion within three months. Bloomberg: “The partial restart is bigger than
The explosion is reported to have been caused previously expected.”
by excess pressure in a pipeline at the plant at Meanwhile, Energy Aspects analyst David
Quintana, Texas, with the PHMSA saying that Seduski said: “We previously had Freeport only
120,000 cubic feet (3,400 cubic metres) of LNG returning to partial service in November, and the
had been released within the facility. extra feedgas demand that is likely puts longer
The regulator said that Freeport LNG is odds on the bearish side of the market.”
“evaluating and advancing initiatives related to The NYMEX Henry Hub August contract
training, process safety management, operations jumped by more than 7% on the news on August
and maintenance procedure improvements, and 3, though it remained well below the recent peak
facility inspections.” of $8.993 per mmBtu.™
October will see the resumption of three of

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