Freeport LNG export plant in Texas reports shutdown of liquefaction train
U.S. LNG company Freeport LNG said one of the three liquefaction trains at its LNG export plant in Texas shut on Tuesday, according to regulatory filings.
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 were down about 3% to a six-week low on Tuesday due in part to the shutdown of the liquefaction train at Freeport.
Prices in Europe TRNLTTFMc1, meanwhile, held near a 19-month low, though not necessarily for reasons associated with Freeport.
Freeport told Texas environmental regulators that Train 2 shut down on Tuesday due to an issue with a compressor system.
Officials at Freeport had no additional comment.
Before news of the train shutdown, LSEG said gas flows to Freeport were on track to remain around 1.9 billion cubic feet per day (bcfd) on Tuesday, the same as the average of the prior seven days.
The three liquefaction trains at Freeport are capable of turning about 2.4 bcfd of gas into LNG.
One billion cubic feet of gas is enough to supply about five million U.S. homes for a day.
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