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Freeport’s Corrective Measures Agreement

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Freeport LNG Development LP and the Pipeline Hazardous Materials Safety Administration (PHMSA) have entered into a consent agreement related to the June 8 incident at Freeport LNG’s 15-million tonne/year liquefaction plant on Quintana Island, Texas.

The obligations under the agreement are intended to ensure that Freeport LNG can safely resume initial LNG production and thereafter ultimately return to full operation of all liquefaction infrastructure, the company said in a release on August 3.

The agreement includes corrective measures, many of which are currently underway, that Freeport LNG is to take to obtain approval for an initial resumption of LNG production from the plant.

Freeport LNG currently expects to complete necessary corrective measures, along with applicable repair and restoration activities, and resume initial operations in early October. Initial operations are expected to consist of three liquefaction trains, two LNG storage tanks, and one LNG loading dock, which are expected to enable delivery of about two bcfd of LNG, enough to support its existing long-term customer agreements, the company said.

In addition to the repair and replacement of physical infrastructure that was damaged, and as part of the corrective measures under the agreement, the company is evaluating and advancing initiatives related to training, process safety management, operations and maintenance procedure improvements, and plant inspections.

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