Freeport LNG export plant in Texas to take in more natgas on Wednesday after Tuesday reduction
Freeport LNG's export plant in Texas (U.S.) was on track to take in more natural gas on Wednesday after flow declined on Tuesday in a sign the plant was recovering from some disruption earlier in the week, according to data from financial firm LSEG.
The U.S. plant is one of the most closely watched U.S. liquefied natural gas export facilities in the world, with operational changes potentially causing price swings in global gas markets.
Gas prices in the U.S. usually decline in response to lower demand for the fuel from the export plant. Prices in Europe, meanwhile, usually increase because of the reduction in LNG supplies available to global markets.
Futures prices in the U.S. were down about 5% on Wednesday due in part to uncertainty about the reduction in gas flows to Freeport.
Prices in Europe, meanwhile, were up about 4% to a three-month high due mostly to colder forecasts in Europe but also due in small part to the reduction in gas flows to U.S. LNG export plants, including Freeport.
LSEG said gas flows to Freeport were on track to rise to 1.4 Bft3d on Wednesday, up from 0.7 Bft3d on Tuesday. That compares with average gas flows of 1.9 Bft3d during the prior seven days.
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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