US DOE Authorizes Freeport LNG Exports -- September 14, 2018

Surf Medley, Junior Brown

This is a pretty cool story, though the article seems hard to read/understand (at least for me). But in the two graphics below, only three Freeport LNG trains are shown/planned at the time the graphics were first produced; in the new story, Freeport LNG has authorization for a fourth train; has some commitments; needs more

US Department of Energy authorizes Freeport LNG exports. Link here. Hard story to follow the way it is written.

• DOE authorizes Freeport LNG to export up to 2.14 billion cubic feet from Texas facility
• a "short-term order" provides Freeport flexibility in obtaining necessary funding to continue with project
• will eventually get long-term authorizations from DOE (that's what TransCanada Keystone XL folks said -- ouch!)
• last week: Freeport LNG announced 2.2-million-ton-over-20-year deal with Japan
• that deal (apparently the just-announced DOE short-term authorization, but not sure) will go into effect in 2023 when the fourth liquefaction train at the Freeport facility is due to be completed
• will have annual capacity of 3.5 million tons of LNG
• Freeport LNG needs to find long-term commitments for another 1.3 million tons of LNG to guarantee the construction of the fourth train
• the first train should be operating by the end of 2019
• currently, the only two operating LNG export facilities in the US are Sabine Pass and Dominion Cove with a combined capacity of 3.5 billion cubic feet of gas daily
• so far, the US has approved long-term LNG export contracts to the tune of 21.35 billion cubic feet of gas daily
• 21 x 365 = 7,665 billion cubic feet annually
• US exports of LNG began in 2016; total production since then has reached the equivalent of more than 1.3 trillion cubic feet of natural gas
• I can't even begin to count the ways that story as written is confusing
• short term deal or long term deal goes into effect in 2023
• first train, fourth train mentioned; what happened to 2nd and 3rd trains
• tons vs tonnes vs million, billion, trillion cubic feet
• "total production" since 2016 vs exports?

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Background

Where does the US stand now?

From previous posts regarding US LNG export facilities.

List of potential US LNG export facilities -- compiled by RBN Energy -- back on October 12, 2016.

EIA: US liquefaction capacity additions by project and train, release date -- March 2, 2017. This is pretty cool: the graph below shows three trains for Freeport LNG; the story above reflects a fourth train for Freeport LNG;

LNG export terminal projects -- update in one graph, from this post: