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Freeport applies for DOE authorization to export LNG from expansion unit

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Freeport applies for DOE authorization to export LNG from expansion unit

The developer of the Freeport LNG export project under construction in Texas asked federal regulators for permission to export to countries with which the U.S. does not have a free trade agreement from a proposed expansion unit.

A notice in the Federal Register on May 23 said the U.S. Department of Energy received an application from Freeport to export 0.72 Bcf/d of natural gas in the form of LNG from a fourth liquefaction train at its Texas terminal. The license would allow Freeport to ship those volumes to any country with which trade is not prohibited by U.S. law or policy.

Freeport is building a three-train export project on Quintana Island, Texas, that would be able to produce 15.3 million tonnes per annum of LNG. The developer in June 2017 submitted an application with the Federal Energy Regulatory Commission for a fourth train that would add 5.1 mtpa of production capacity. FERC is responsible for permitting the infrastructure associated with LNG exports, while the DOE authorizes the exports.

Freeport said in mid-April that it was delaying its first liquefaction train's service to September 2019, with the second and third trains coming online in January 2020 and May 2020, respectively.

The initial three trains have take-or-pay tolling agreements for roughly 13.4 mtpa of their capacity with Osaka Gas Co. Ltd., Jera Energy America LLC, Toshiba Corp. and SK E&S LNG LLC.

Freeport in early April announced a nonbinding memorandum of understanding with Lithuania's Lietuvos Duju Tiekimas under which the companies will start looking at the "commercial possibilities" of sending U.S. LNG produced at the Texas terminal to Lithuania and other Baltic states.