Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
LNG | Natural Gas

Freeport LNG delays target for sanctioning fourth liquefaction train until at least 2021

Commodities | Agriculture | Grains | Energy | Electric Power | LNG | Natural Gas | Oil | Crude Oil | Metals | Coronavirus

Market Movers Americas, June 29-July 3: Rig count rises, but pandemic continues to pressure US commodities

LNG | Natural Gas | NGL

Platts LNG Alert

Capital Markets | Commodities | Electric Power | Natural Gas

Mexican Energy Conference, 24th

Natural Gas

Italy regulator grants TAP AG more time for first gas delivery, company confirms Q4 deadline

Freeport LNG delays target for sanctioning fourth liquefaction train until at least 2021


Market challenges, virus-fueled demand drop blamed

Multiple other US developers have also delayed FIDs

Houston — Freeport LNG has delayed its target for making a final investment decision on whether to build a fourth liquefaction at its Texas export facility until at least next year, amid market and coronavirus pandemic-related challenges that have hurt development efforts, the operator said June 23.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

With the ability to secure new long-term supply contracts with buyers to finance projects all but shut off, multiple other developers of new US terminals and liquefaction units have put off sanctioning decisions until 2021 or beyond. Some have stopped updating timing guidance. One integrated major, Shell, pulled out of a proposed export project in Louisiana.

"As with most LNG projects around the world, COVID-19 and other market challenges have negatively impacted our development efforts," Freeport LNG spokeswoman Heather Browne said in an email. "As such, we do not expect to reach FID on Train 4 this year. Given we are a brownfield expansion, if market conditions improve, we can easily be in a position to start construction by mid-2021."

Previously, as the deadly respiratory illness spread globally, Freeport LNG had said only that it was unsure when it could advance the Train 4 expansion.

In an interview with S&P Global Platts in February, CEO Michael Smith said Freeport LNG did not have any firm long-term contracts in place tied to Train 4. A preliminary agreement signed in 2018 by Japan's Sumitomo for the purchase of 2.2 million mt/year of LNG from Train 4 expired without without being finalized, he said.

At the time, Smith lamented that the substantially lower fees that developers of new US LNG export projects were being asked to accept for their supplies compared with what was agreed to for existing facilities was making it very difficult for most developers to build.

And that was before the virus caused global LNG demand to decline sharply, pushing international prices to record lows.

Approximately 130 cargoes scheduled to be loaded between April and August at US LNG export terminals have been canceled by customers, according to Platts' latest tally based on information from market sources.

In turn, utilization at the six major US liquefaction terminals currently online has plunged, including at Freeport LNG, where three trains are in operation.