Freeport LNG Operates, Despite Seventh Unplanned Unit Closes

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  • LNG facility is only one in US to use all-electric compressors.
  • Recent outages relatively short amid strong market trends.

A recent Platts news source by Harry Weber states that Freeport LNG operating normally after seventh unplanned unit shutdown in June.

Freeport LNG’s three trains

One of Freeport LNG’s three trains shut down due to a compressor trip, the second brief unplanned outage in a week and the seventh month-to-date, based on Texas air emissions reports.

The total reported to the Texas Commission on Environmental Quality as of June 25 was the most since the February freeze disaster that led to power blackouts across the state.

Facility at south of Houston

The facility south of Houston is the only liquefaction terminal in the US and one of only a few in the world that uses exclusively electric motors instead of natural gas turbines to drive the liquefaction compressors.

By comparison, Cheniere Energy’s Corpus Christi Liquefaction, which uses gas-driven turbines at the Texas facility, has had two unit shutdowns so far this year that resulted in air emissions reports to TCEQ. One was due to a scheduled maintenance, and the other was also planned.

Shutdowns at Freeport LNG

  • Except for the disruptions during the freeze, the shutdowns at Freeport LNG have been relatively short.
  • Amid strong market fundamentals, Freeport LNG has seen high terminal utilization and robust export activity in recent months.
  • A spokeswoman said all three trains were operating and producing LNG June 25. She declined to comment further.

Latest compressor trip incident

The latest compressor trip incident at Freeport LNG, which involved Train 1, occurred June 24, according to a report filed with TCEQ.

“After resolution of the cause of the compressor trips, the plant operators managed the re-start of the compressors and Liquefaction Train 1 as efficiently as possible to minimize flaring,” the report said.

Current feedgas deliveries to US liquefaction facilities imply a utilization of about 90%, as strong prices in end-user markets in Asia and Europe continue to incentivize robust export activity.

US Gulf Coast LNG netbacks

US Gulf Coast LNG netbacks strongly favor the Platts JKM through the balance of summer.

Even with Atlantic shipping rates outpacing Pacific rates, daily LNG cargo transits to Asia via the Cape of Good Hope have recently widened their edge over transits via the Panama Canal amid the US supply push, congestion at the Panama Canal, and market dynamics.

The rate of LNG tanker transits around the Cape of Good Hope so far for June has reached the highest level in six months.

Gas deliveries to Freeport LNG

Gas deliveries to Freeport LNG, based on nominations for the morning cycle, totaled 2.13 Bcf/d on June 25.

It is an increase of about 140 MMcf/d from the day before when the latest trip occurred, S&P Global Platts Analytics data showed.

Feedgas flows to the facility fell to 1.75 Bcf/d on June 22, when the week’s earlier unplanned unit shutdown, which was due to a compressor trip involving Train 2, occurred.

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Source: Platts