Freeport LNG Feedgas Rebounds After Train 2 Shutdown in Texas

Feedgas deliveries to one of the world's most closely watched LNG export facilities are recovering after an unexpected operational disruption affected liquefaction capacity.

(Reuters) — Freeport LNG's export plant in Texas was on track to take in more natural gas on June 8 after one of its three liquefaction trains shut down on June 6, 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 have previously caused massive price swings in global gas markets.

When Freeport shuts, U.S. gas prices usually drop because demand for the fuel from the plant declines, and when liquefaction trains at Freeport restart, U.S. gas prices usually rise as demand for the fuel increases.

That, however, did not happen so far on June 8. Gas prices were down about 3% so far on June 8 due to factors not necessarily related to Freeport.

Officials at Freeport were not immediately available for comment.

On June 7, Freeport told Texas environmental regulators that liquefaction Train 2 shut down late on Saturday due to an issue with a compressor system.

LSEG data showed that gas flows to Freeport were on track to rise to 1.7 billion cubic feet per day on June 8 after dropping to 0.9 billion cubic feet per day on June 7, down from 1.3 billion cubic feet per day on Saturday. That compares with an average of 1.2 billion cubic feet per day from May 14 to June 5 due to scheduled spring maintenance.

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.