SINGAPORE—Freeport LNG’s liquefied natural gas export plant in Texas has started commercial operation for its first liquefaction train, project partner JERA said on Dec. 10.
The added supply is expected to further weigh on spot prices which are already at their lowest ever for this time of the year, trade sources said.
The project started commercial operation on the first production line, or train, on Dec. 8, JERA said in a press release, adding that the project would produce LNG for export from natural gas procured in the United States.
The first commissioning cargo from the liquefaction facility located on Quintana Island in Freeport, Texas, was shipped in early September and was later offloaded at Jebel Ali in the United Arab Emirates, Refinitiv Eikon shipping data showed.
Japan’s Osaka Gas Co. Ltd. and JERA Co., a joint venture between Tokyo Electric Power Co. and Chubu Electric Power Co., will each lift half of Train 1’s total contracted capacity of about 4.64 million tonnes per year once commercial production starts.
Freeport has liquefaction tolling agreements from Train 1 that last about 20 years with Osaka Gas and JERA. Both companies will secure LNG without destination restrictions, helping them diversify supply sources and price indices, as well as enhance procurement stability and flexibility.
Recommended Reading
Environmental Group Urges 1,600 Firms to Disclose Emissions Data
2023-05-31 - Collectively, the companies, including Exxon Mobil, emit the equivalent of the greenhouse-gas emissions of the U.K., the EU and Canada combined.
UK Pension Funds 'Concerned' Over Asset Manager Climate Vote Record
2023-05-17 - Concerns rise in the U.K. about how asset managers vote on climate-related issues at European oil and gas companies.
Crestwood Publishes Fifth Annual Sustainability Report
2023-06-05 - Crestwood Equity Partners’ sustainability report highlights the company’s progress in achieving its ESG and sustainability goals.
Raven SR Announces Approval Permit for Bioenergy Project
2023-05-24 - Raven SR Inc. has received a permit for the first organic waste-to-hydrogen bioenergy project.
Moore: Catalyst's Vortex Completions Tech Packs a Punch [WATCH]
2023-04-03 - Catalyst Energy Services' COO Seth Moore sat down with Hart Energy's Jordan Blum to talk about the company's Vortex Prime completions technology, which packs more horsepower into an even smaller machine compared to conventional industry technology.