SINGAPORE—The Freeport LNG project in the U.S. has shipped its first commissioning cargo, adding to the glut of supply of the super-chilled fuel globally.
The company said in a statement late Sept. 3 that it has shipped its first LNG commissioning cargo for Train 1 from its liquefaction facility located on Quintana Island in Freeport, Texas.
About 150,000 cubic meters of LNG was loaded on board the LNG tanker LNG Jurojin, which left the Freeport LNG terminal on Sept. 3, the company said.
The tanker is currently bound for Jebel Ali, in the United Arab Emirates, according to shiptracking data on Refinitiv Eikon.
“This first cargo loading ... gets us one step closer toward our start of commercial operations which is anticipated later this month,” said Michael Smith, chairman and CEO of Freeport LNG.
The start-up of Freeport LNG is expected to add to a supply glut which has been weighing on spot LNG prices in Asia.
“The start-up of Freeport LNG contributes to even more supply growth at a time when the market is already oversupplied,” said Edmund Siau, an LNG analyst with FGE.
“Winter is just around the corner and seasonal demand will help to absorb this new supply, however, we see a key risk posed by European gas inventories that are already above 90% full.”
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 annum (mtpa) once commercial production starts.
Freeport has about 20-year liquefaction tolling agreements with Osaka Gas and JERA from Train 1. Under the deal, both companies will secure LNG without destination restrictions, helping them diversify supply sources and price indices, as well as enhance procurement stability and flexibility.
Private equity firm Riverstone is offering the roughly 12.3 million shares of Class A common stock it still owns in Liberty Oilfield Services in a public offering priced at $15.60 per share.
The purchase of Permian Basin acreage from Occidental Petroleum is Colgate Energy’s second acquisition in the region this month so far putting the company in a truly differentiated position, Co-CEO James Walter says.
Schlumberger has spent billions of dollars to take over managing customers' oil fields, in some cases becoming an investor in the fields, while seeking to profit from increased oil production.