The second-largest U.S. liquefied pure fuel (LNG) exporter on Wednesday stated it reached an settlement with a federal regulator that may permit it to renew some operations at its Quintana, Texas, plant in October.
Freeport LNG shut the plant, which provides about 20% of U.S. LNG exports, following an explosion and hearth on June 8. Its closure helped to push up LNG costs in Europe and Asia, and dampening U.S. pure fuel costs.
The operator reached a consent settlement with the Pipeline and Hazardous Supplies Security Administration (PHMSA) that included corrective measures the corporate should take to permit it to renew partial operations, it stated in a press release.
Freeport LNG is “evaluating and advancing initiatives associated to coaching, course of security administration, operations and upkeep process enhancements, and facility inspections,” with out detailing the measures deliberate.
The June explosion was attributable to an over-pressurized pipeline, officers have stated. Full operations on the Texas Gulf Coast facility usually are not slated to renew till the tip of the 12 months.
The preliminary restart will embody three liquefaction trains, two LNG storage tanks and one LNG loading dock. The restart will allow the plant to ship roughly 2 billion cubic toes (BCF) per day of LNG, sufficient for present long-term buyer agreements, the corporate stated
(Reuters – Reporting by Liz Hampton in Denver; Modifying by Lisa Shumaker)