Freeport LNG to increase production by 10% following conclusion of repairs in May 2024

(Bloomberg) – Freeport LNG will increase its production of liquefied natural gas following repairs that are due to be concluded in early May, the company’s chief executive officer said in an interview.

Maintenance will increase the Texas facility’s capacity to 16.5 million metric tons a year, up from the approximately 15 million tons a year currently, CEO Michael S. Smith said Tuesday at the CERAWeek by S&P Global energy conference in Houston.

“We’re adding 10% of production capacity,” Smith said, noting that Train 4 will add another 25% once operational. “It’s an exciting future,” he added.

The three-train plant has been undergoing maintenance since late January following a deep freeze in Texas that caused an issue on one of its trains. The additional output will double Freeport LNG’s fuel exports directly to customers to 3 million tons a year, as the remaining volume is currently under long-term contract.

As of Wednesday, feedgas to Freeport LNG remained at operating levels that indicated only one train is online, according to data compiled by BloombergNEF. Smith said the final stages of restarting Train 3 should be completed by Wednesday.

Freeport LNG’s fourth train expansion is currently permitted, but still undergoing customer discussions, Smith said.