US Freeport LNG Train 3 Starts Up

Freeport LNG's third liquefaction train started commercial operations May 1, the US operator said May 4. Freeport LNG operates under tolling contracts with French Total and South Korean SK E&S. The terminal had regulatory approval a few days earlier.

The plant comes on line when the short-term gas price is low in Europe and Asia, making US LNG exports uneconomic unless the offtaker can add value, for example using the gas to generate electricity for sale in the destination market.

"The start of commercial operations for Freeport LNG's Train 3 marks the full commercial operation of our $13.5bn, three train facility. After over five and a half years of construction, which began in December 2014, we are thrilled to now have all three trains operating safely, and capable of producing in excess of 15mn metric tons/yr. I want to congratulate and thank our teams who have worked diligently throughout our development and construction process, navigating many challenges along the way. Freeport LNG's success would not be possible without the dedication, hard work and discipline of our employees," said CEO Michael Smith. 

Freeport LNG's liquefaction facility is the seventh largest in the world and the second largest in the US, and will process more than 2% of US gas output when at full capacity. A fourth train is awaiting final investment decision.