Freeport LNG in Texas to take in more natgas on Sunday-Monday after train shut on Friday
Freeport LNG's export plant in Texas was on track to take in more natural gas on Sunday and Monday after one of its three liquefaction trains shut down on Friday, 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 has 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 usually rise as demand for the fuel increases.
That is what has happened so far on Monday with U.S. gas futures trading up around 2% near a two-week high due in part to rising intake at LNG export plants.
Officials at Freeport were not immediately available for comment.
On Saturday, Freeport told Texas environmental regulators that liquefaction Train 2 shut down late on Friday due to an issue with a compressor system.
LSEG data showed that gas flows to Freeport were on track to hold at 1.9 Bft3d on Monday, the same as on Sunday, after dropping to 1.3 Bft3d on Friday and Saturday. That compares with an average of 1.8 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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