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Freeport cleared to ship out commissioning cargoes

Ferc allows Freeport LNG to export liquefied natural gas volumes from Train 1

US federal regulators have granted Freeport LNG approval to ship out commissioning cargoes from its liquefied natural gas export facility in Texas.

Freeport LNG on Thursday obtained permission from the Federal Energy Regulatory Commission to start exporting volumes of LNG produced during commissioning activities at Train 1. Ferc has not yet authorised Freeport to begin formal commencement of service at the three-train 15 -million-tonnes-per-annum LNG export terminal.

The first train is expected to be placed into service in September, while the second and third trains are anticipated to come online in the first and second quarter of 2020, respectively.

The project has faced several construction delays, adding $500 million in additional project costs, the majority of which will be paid by EPC contractors CB&I (now McDermott), Chiyoda, and Zachry, Smith told Upstream earlier this year.

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Freeport is also set to pay between $100 million and $200 million for damages associated with the aftermath of Hurricane Harvey.

The private LNG player was also recently granted approval to site, construct and operate a fourth liquefaction train that would add more than 5 million tonnes per annum to the project.

A final investment decision on the train is expected in the second half of 2019, with construction scheduled to begin later this year and operations starting in 2023.

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