Freeport LNG, the latest US export plant to come on stream at Quintana Island in Texas, plans to launch its own LNG cargo sales windows with trading platform provider, Redwood Marketplace.
Redwood Marketplace explained that Freeport LNG, as a host on the platform would be able to negotiate and match physical, bilateral LNG transactions with potential off-takers in a variety of online formats with multiple options for transparency.
“The advantage of the private storefront is to bring efficiency of online trading to the buyer or seller LNG requirements without losing the direct, private connection between the respective parties,” it said. Once the trade is executed, the platform offers a communication channel between the buyer and seller through the loading, delivery and unloading of each cargo.
The first Freeport cargo was lifted on September 4 from the first of the planned four-Train plant and is currently being ramped up to produce 5 million tonnes per annum (mtpa). The current Freeport engineering contract includes three liquefaction Trains with a total of capacity of 15 mtpa, a second loading berth and a 165,000 cubic metres full containment LNG storage tank.
Freeport received regulatory approval in 2019 to build an additional Train 4 and permits from the US Department of Energy (DoE) for the export of Train 4 volumes to Non-Free Trade Agreement countries, opening the way for marketing.
The Redwood Marketplace is an online commodity trading platform that enables buyers and sellers of physical LNG to negotiate and confirm commercial terms while offering efficiency, standardization and price discovery.
Freeport CEO Hugh Urbantke said implementing a ‘private storefront’ at the liquefaction project will streamline interactions. “It will also allow us to efficiently and transparently provide counterparties direct access to Freeport LNG’s spot cargoes.”