Freeport LNG export plant in Texas to take in more natgas after unit shut on Monday
U.S. liquefied natural gas company Freeport LNG's export plant in Texas was on track to take in more natural gas on Tuesday in a sign that one of its three liquefaction trains has returned to service after shutting down on Monday.
The plant is one of the most closely watched U.S. LNG export facilities in the world because changes to its operations have caused price swings in global gas markets in the past.
When flows to Freeport drop, gas prices in the U.S. usually decline owing to reduced demand for the fuel from the export plant. Prices in Europe, meanwhile, usually increase due to a drop in LNG supplies available to global markets.
Futures prices in the U.S. NGc1 did fall by around 7% on Monday due in small part to the shutdown of the liquefaction train at Freeport.
Prices in Europe, meanwhile, held near a 19-month low, though not necessarily for reasons associated with Freeport.
Freeport told Texas environmental regulators that Train 1 shut down on Monday due to an issue with a compressor system.
LSEG said gas flows to Freeport were on track to reach a one-month high of around 1.9 billion cubic feet per day (bcfd) on Tuesday, up from 1.6 bcfd on Monday. That compares with an average of 1.9 bcfd over the prior seven days.
The three liquefaction trains at Freeport are capable of turning about 2.4 bcfd of gas into LNG.
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