Freeport LNG in Texas (U.S.) to take in more natgas on Thursday after shutting on Wednesday
Freeport LNG's export plant in Texas was on track to take in more natural gas on Thursday after all three liquefaction trains shut on Wednesday, according to a company report and data from financial firm LSEG.
Freeport is one of the world's most closely watched liquefied natural gas export plants because the shutdown and startup of the facility previously caused massive price swings in global gas markets.
When Freeport shuts, U.S. gas prices usually drop because the plant's demand for the fuel declines, and when liquefaction trains at Freeport restart, U.S. gas prices typically rise as demand for the fuel increases.
That is what happened so far on Thursday with U.S. gas futures trading up around 1% due in part to the return of Freeport.
Officials at Freeport had no comment on the outage on Wednesday.
Freeport told Texas environmental regulators on Wednesday that all three liquefaction trains tripped due to an incoming power feed interruption.
LSEG data showed that gas flows to Freeport were on track to rise to 0.6 Bft3d on Thursday, up from 0.2 Bft3d on Wednesday. Since July 10, Freeport had been pulling in a reduced 1.2 Bft3d of gas during maintenance work expected to last until late August.
The three liquefaction trains at Freeport are capable of turning about 2.4 Bft3d of gas into LNG.
One Bft3 is enough to supply about 5 MM U.S. homes for a day.
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