Freeport LNG Fined $152,173 for Air Pollution Violations in Texas

The Texas Commission on Environmental Quality (TCEQ) has fined liquefied natural gas (LNG) exporter Freeport LNG $152,173 for violating state air pollution emissions rules between 2019 and 2021. The violations involved the release of carbon monoxide, hydrogen sulfide, nitrogen oxides, sulfur dioxide, and volatile organic compounds in excess of allowed levels from flaring at the company's Quintana, Texas plant.

The state has proposed to reduce the penalty to $121,739 if Freeport LNG quickly addresses the violations and takes steps to prevent future emissions releases. Freeport LNG has suffered from a series of outages in recent years, including a massive fire in 2022 and repairs to several plants that have led to it producing LNG well below capacity.

As of March 20, the company had shut down its Train 2 liquefaction unit and planned to take down Train 1 for inspections and repairs, which were to be completed by May. The company expects to increase production from 15 million tonnes per annum (mtpa) to just over 16.5 mtpa by June after the maintenance work is completed.

Why this matters: The case highlights the importance of LNG facilities complying with air pollution regulations to minimize their environmental impact. Freeport LNG's violations and subsequent fine serve as a prompt for the industry to prioritize environmental compliance and take proactive measures to prevent excessive emissions.

In a statement, TCEQ said the proposed penalty "reflects the serious nature of the violations" at Freeport LNG's facility. The agency added that it will continue to monitor the company's operations closely to ensure future compliance with air quality rules. Freeport LNG did not immediately respond to a request for comment on the fine and violations.

Key Takeaways

• TCEQ fined Freeport LNG $152,173 for air pollution violations from 2019-2021.
• Violations involved excess emissions of CO, H2S, NOx, SO2, and VOCs from flaring.
• TCEQ proposed to reduce fine to $121,739 if Freeport LNG addresses violations.
• Freeport LNG has suffered outages, including a 2022 fire, reducing LNG production.
• The case highlights importance of LNG facilities complying with air regulations.