US energy regulators questioned over supervision of Freeport, Texas LNG plant By Reuters

By Arathy Somasekhar

FREEPORT, Texas (Reuters) – Texans questioned U.S. energy regulators on Saturday over their oversight of liquid processing plants at a meeting to discuss conditions at the idled Freeport LNG plant for a fire.

The second largest US liquefied natural gas (LNG) export facility was taken offline by a fire explosion last June and operations have halted while regulators review operations and staffing.

When fully operational, Freeport LNG processes about 2 billion cubic feet per day of natural gas and exports up to 15 million tons of LNG per year. Its progress toward reopening is being closely watched due to the impact on US natural gas prices.

Bryan Lethcoe, regional director for regulator Pipeline Hazardous Materials Safety Administration (PHMSA), said it would take “several months” for Freeport LNG to be fully operational again. PHMSA officials declined to provide an exact estimate.

Residents questioned whether regulators have adequately supervised the plant’s repairs, its past emissions or monitoring the health of local residents.

“We are concerned that they are getting closer to reopening. I hope FERC and PHMSA will delay the process to allow them to reopen,” said Melanie Oldham, one of the 100 residents who attended the meeting.

A Freeport LNG spokesman declined to comment.

The explosion was the result of inadequate test and operating procedures, operator fatigue and other shortcomings, a safety audit found. About 10,000 pounds of methane was released, a PHMSA representative said. Methane is the main component of natural gas and a potent greenhouse gas.

The LNG producer has completed all repairs and is working to safely restart the facility once regulators approve its plans, a spokesman said earlier.

Linda Daugherty, PHMSA deputy associate administrator, said her reviews are continuing. The officials declined to comment if they discovered any security breaches.