HomeNewsUS natgas flows to Freeport LNG export plant in Texas rise

US natgas flows to Freeport LNG export plant in Texas rise

3/29/2023

(Reuters) - The amount of natural gas flowing to U.S. liquefied natural gas (LNG) company Freeport LNG's export plant in Texas was on track to hit its highest on Wednesday since shutting in June 2022, according to data provider Refinitiv.

The plant has been slowly pulling in more feedgas since it exited an eight-month outage in February.

Gas flows to Freeport LNG were on track to rise to 1.8 billion cubic feet per day (bcfd) on Wednesday, up from 1.6 bcfd on Tuesday.

Energy traders said gas flows at that level likely signal Freeport LNG started the third of three liquefaction trains at the plant. Liquefaction trains turn gas into LNG for export.

Freeport LNG had no comment on the increase in gas flows to the plant.

When operating at full power, Freeport LNG can turn about 2.1 bcfd of gas into LNG.

One billion cubic feet of gas is enough to supply about five million U.S. homes for a day.

On March 8, Freeport LNG anticipated feedgas flows would rise and fall as the plant returns to full production over the "next few weeks."

Sources familiar with the plant said Freeport LNG had canceled some cargoes for March due to issues with one train, and noted the facility could take longer than the company expects to return to full service.

Demand for U.S. LNG increased after several countries slowed purchases of Russian energy and imposed sanctions on Moscow after Russia's invasion of Ukraine in February 2022.

The combination of those sanctions and the Freeport LNG shutdown drove gas prices to record highs in Europe and Asia during summer 2022.

Total gas flows to all seven big U.S. LNG export plants rose to an average of 13.1 bcfd so far in March, up from 12.8 bcfd in February.

That would top the monthly record of 12.9 bcfd in March 2022, before Freeport LNG shut.

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