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Freeport LNG marks milestones
PERFORMANCE
MCDERMOTT International, Chiyoda Interna- tional and Zachry Group, the engineering, pro- curement and construction (EPC) contractors on the Freeport LNG export project in Texas, have announced two milestones on the develop- ment of the terminal.
On December 6, the contractors said Train 2 at Freeport had started producing LNG. They added that Trains 2 and 3 at the facility were being started up on schedule, with initial pro- duction from Train 3 due in the first quarter of 2020. Start-up of the facility’s trains has previ- ously been pushed back owing to delays relat- ing to flooding from Hurricane Harvey, among other factors. All three trains had initially been scheduled to enter service in 2019.
Days after the announcement about pro- duction from Train 2, on December 9, the contractors stated that the operator of the facility – privately held Freeport LNG Devel- opment – had started commercial operation of Train 1.
“The past few months have brought signifi- cant accomplishments for Train 1 of the Freeport
LNG project – starting with introduction of feed gas in July, first liquid in August, shipment of first cargo in September and now commercial operation,” McDermott’s senior vice-president for North, Central and South America, Mark Coscio, said in a statement.
Zachry, the joint venture lead, partnered with McDermott for the pre-front-end engineering and design (pre-FEED) on the project in 2011. This was followed by FEED works to support the early development stage of Freeport LNG. Chi- yoda later joined the partnership for work related to Train 3.
The project scope includes three pre-treat- ment trains, a three-train liquefaction facility, a second loading berth and a 165,000 cubic metre full containment LNG storage tank.
Each train at Freeport has the capacity to pro- duce around 5mn tonnes per year (tpy) of LNG. The company has received approval from federal regulators to build a fourth train at the facility, and said in September that it was targeting a final investment decision (FID) on that train in the coming months.
US regulators approve LNG-by-rail plan
PIPELINES & TRANSPORT
FEDERAL regulators in the US have approved the use of trains to ship LNG to Gibbstown, New Jersey, from Wyalusing in north-eastern Penn- sylvania. This is the first route in the country on which the transportation of LNG by rail will be allowed, and brings New Jersey a step closer to building its first terminal for the fuel.
The plan is being proposed by New Fortress Energy’s logistics subsidiary Energy Transport Solutions. It involves liquefaction of gas pro- duced in Pennsylvania’s prolific Marcellus shale play and its shipment via rail to Gibbstown. Once the terminal in Gibbstown has been built, the LNG can be exported from there.
The US Pipeline and Hazardous Materials Safety Administration (PHMSA) announced its approval of the plan on December 6, saying it was satisfied that Energy Transport could safely operate the trains. This came despite objections to the project by environmental groups, which argued that transporting the fuel by train posed a risk to public safety, especially in densely pop- ulated areas.
“PHMSA’s technical evaluators have deter- mined that the special permit provides an equiv- alent level of safety to what is required under the
Hazardous Materials Regulations, and recom- mend that the permit be granted,” the agency said in a statement.
The permit only covers shipments between the two points, in a specific type of tanker. The PHMSA also directed Energy Transport to submit its plans for the quantities of LNG to be shipped, and their timing, within 90 days, adding that the company must prepare local emergency responders to deal with any poten- tial release of LNG. These conditions need to be complied with 6-12 months before shipments begin.
Energy Transport’s plan previously envisaged using at least 360 truck trips per day to carry LNG to Gibbstown, over a distance of about 175 miles (281km). According to local media reports, it is currently unclear whether the trains will fully substitute the trucks or will be used in addition to them.
The approval follows an Executive Order issued by US President Donald Trump in April calling for new regulations that would allow the transportation of LNG by rail for the first time. The PHMSA has proposed new rules for LNG- by-rail shipments in response.
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