Freeport LNG Restarts Texas Export Plant After Power-Related Shutdown

Freeport LNG is ramping up feedgas deliveries after a power interruption shut down all three liquefaction trains, offering an early sign the Texas export facility is returning to normal operations.

(Reuters) — Freeport LNG's export plant in Texas was on track to take in more natural gas on July 16 after all three liquefaction trains shut on July 15, 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 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 typically rise as demand for the fuel increases.

That is what happened so far on July 16 with U.S. gas futures trading up around 1% due in part to the return of Freeport.

Officials at Freeport had no comment on the outage on July 15.

Freeport told Texas environmental regulators on July 15 that all three liquefaction trains tripped due to an incoming power feed interruption.

LSEG data showed that gas flows to Freeport were on track to rise to 0.6 billion cubic feet per day on July 16, up from 0.2 billion cubic feet per day on July 15. Since July 10, Freeport had been pulling in a reduced 1.2 billion cubic feet per day of gas during maintenance work expected to last until late August.

The three liquefaction trains at Freeport are capable of turning about 2.4 billion cubic feet per day of gas into LNG.

One billion cubic feet of gas is enough to supply about 5 million U.S. homes for a day.