Update: Freeport LNG shuts one liquefaction train at Texas export plant for maintenance
Freeport LNG said on Wednesday that it was taking one of the three liquefaction trains at its liquefied natural gas (LNG) export plant in Texas (U.S.) offline for scheduled maintenance (LEARN MORE).
"We anticipate the train's safe return to service in the next several weeks," a spokeswoman for the company said in an email.
Freeport is one of the world's most closely watched LNG export plants because the shutdown and startup of the facility have 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. prices usually rise as the plant consumes more gas.
So far on Wednesday, however, U.S. gas futures were up about 1% despite the feedgas decline at Freeport, which was expected. U.S. gas prices were up due primarily to a decline in output over the past several days, according to energy analysts.
Data from financial firm LSEG showed gas flows to Freeport were on track to decline to 1.6 Bft3d on Wednesday, down from 1.9 Bft3d over the prior four days.
The three liquefaction trains at Freeport are capable of turning about 2.4 Bft3d of gas into LNG.
One Bft3 of gas is enough to supply about 5 MM U.S. homes for a day.
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