Freeport LNG Development, L.P. (Freeport LNG), designed, built and now operates a world-class LNG receiving and regasification terminal in Freeport, Texas. Unique features of the terminal include vacuum-insulated LNG transfer lines; the environmentally friendly VE air tower that provides heat from the air for regasification; a salt-dome cavern gas storage facility, integrated with terminal operations; and boil-off gas reliquefaction system.
In 2005, when construction of the terminal started, forecasts envisioned a major increase in US LNG imports. Since June 2008, when the terminal entered commercial operations, the North American natural gas industry has gone through a sea change—the shale gas revolution. Now, natural gas resource estimates by the DOE’s Energy Information Administration and private analysts indicate that the U.S. has sufficient natural gas supplies for one hundred years or more. This increase in domestic natural gas resources has resulted in a drop in prices to the point at which US natural gas prices are among the lowest in the world. Freeport LNG believes that the abundance of domestic reserves and low prices mean that the US gas market itself should become a source for LNG export. Given this dramatic reversal of market conditions, Freeport LNG has launched its natural gas liquefaction project, proposing to add approximately 13.2 million metric tons per year (1.9 Bcf per day) of liquefaction capability to its Quintana Island terminal facilities.
Studies by independent consultants show that development of shale gas resources will allow for LNG exports without significantly impacting the price or availability of natural gas supplies to US consumers. In addition, because of the recent breakthroughs in shale gas exploration and development, the U.S. now has an opportunity to export LNG and create upwards of twenty thousand new permanent jobs in the process. LNG exports will produce significant additional benefits for the US economy, including billions of dollars in direct investments, short-term construction jobs and a multibillion dollar annual improvement in our nation’s foreign trade imbalance. And LNG import facilities will remain in place to fulfill LNG importation needs if the US market calls for it.
Liquefaction technology is well proven and dozens of such facilities operate safely and reliably around the world. It will be very efficient to integrate LNG liquefaction facilities into the Freeport LNG terminal on Quintana Island, utilizing the dock, storage and other equipment already in place.
Please read more about this exciting project as well as about the existing LNG terminal here on our website or contact us directly for more information.