Freeport LNG Development, L.P. (Freeport LNG) and the Pipeline Hazardous Materials Safety Administration (PHMSA) have entered into a Consent Agreement related to the June 8 incident at Freeport LNG’s liquefaction facility. Freeport LNG has a long history of commitment to safety and safe operation and overall, the obligations under the Consent Agreement are intended to ensure that Freeport LNG can safely and confidently resume initial LNG production and thereafter ultimately return to full operation of all liquefaction facilities.
In the near term, the Consent Agreement includes certain corrective measures, many of which are currently underway, that Freeport LNG is to take to obtain PHMSA approval for an initial resumption of LNG production from its liquefaction facility. Freeport LNG continues to believe that it can complete the necessary corrective measures, along with the applicable repair and restoration activities, in order to resume initial operations in early October. Those initial operations are expected to consist of three liquefaction trains, two LNG storage tanks and one LNG loading dock, which the company believes will enable delivery of approximately 2 BCF per day of LNG, enough to support its existing long-term customer agreements. In addition to the repair and replacement of Freeport LNG’s physical infrastructure that was damaged in the incident, and as part of the corrective measures under the Consent Agreement, the company is evaluating and advancing initiatives related to training, process safety management, operations and maintenance procedure improvements, and facility inspections.
