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However, she did not say exactly how much after the receipt and analysis of data during this
capacity it might be able to bring back online process.
in the initial stages. “With commencement of Freeport LNG has already launched its own
such operations, we expect to be able to deliver “comprehensive review” of the incident with a
substantially all baseload production volumes,” view to identifying problems and taking correc-
she stated. tive action, the spokeswoman said in the state-
Freeport LNG had said in late June that it ment sent to LNG Prime.
hoped to resume partial operations in about 90 The fire and explosion on June 8 have acted
days, so early October would represent a slight as a significant constraint on US LNG export
delay. The spokeswoman did not comment on capacity. Freeport LNG is one of seven LNG
any changes in timing, but she did stress that export terminals in the country, and its three
the company was working to ensure full com- production trains have a combined capacity
pliance with an order issued by the US Pipeline of 15mn tonnes per year (tpy). If the company
and Hazardous Materials Safety Administration goes ahead with proposals for adding a fourth
(PHMSA). train, its total capacity would rise to 20mn tpy.
“Since the incident on June 8, the company However, it has not yet made a final investment
has worked collaboratively with all local, state decision (FID). ™
and federal officials regarding the incident
response, investigation and safe resumption of
liquefaction operations,” she said.
PHMSA had announced on June 30 that it
expected Freeport LNG to carry out several cor-
rective actions before bringing its facility back
on stream. These include: providing weekly
updates on the density and temperature of the
LNG stored in its tanks; selecting one or more
independent third parties to perform certain
assessments and evaluations; within 60 days of
the order’s issue, submitting a complete plan and
schedule for inspection to determine the extent
of the damage caused by the fire and explosion
on June 8; and then responding appropriately
to corrective measures prescribed by PHMSA The Quintana Island plant has been off line since June 8 (Photo: Freeport LNG)

NextDecade pens two more

LNG deals with Chinese buyers

US-BASED LNG developer NextDecade has the second half of 2022 and greenlight the devel-
signed supply deals with two more Chinese buy- opment of the remaining two at a later stage.
ers, covering the delivery of a combined 2mn These mark the second and third supply
tonnes per year (tpy) of the fuel. deals that NextDecade has struck with Chinese
On July 5, the company announced sign- buyers. In April it signed a 20-year agreement
ing a 20-year LNG agreement with China Gas for 1.5mn tpy of supply from Rio Grande to
Hongda Energy Trading for 1mn tpy of supply ENN Natural Gas.
from the Rio Grande LNG terminal it is devel- “Rio Grande’s differentiated offering of a
oping in Texas. The first batch is expected to be lower carbon-intensive LNG continues to drive
delivered in 2027, and supplies will be made our commercial momentum,” company CEO
on a free-on-board (FOB) basis, with the price Matt Schatzmann said in a statement.
indexed to the Henry Hub benchmark. NextDecade also agreed to sell LNG to
The following day, NextDecade said it had France’s Engie in early May, covering 1.75mn tpy
agreed to sell 1mn tpy of LNG from Rio Grande of supply from Rio Grande over 15 years. Engie
to Guangdong Energy Group, with an option for had previously abandoned talks over a potential
the Chinese firm to take an additional 500,000 $7bn, 20-year contract to buy LNG from Rio
tpy. This agreement is also linked to Henry Hub, Grande in 2020. It reportedly came under pres-
but the gas will be delivered on an ex-ship basis. sure from the French government, as the feed-
NextDecade expects to take a final invest- stock for US LNG is shale gas produced using
ment decision (FID) on the first three trains at hydraulic fracturing, a practice that is banned
the five-train 27mn tpy Rio Grande project in in France. ™

P12 www. NEWSBASE .com Week 27 07•July•2022