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Freeport LNG in Texas on track to take in natgas again after Hurricane Beryl
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Freeport LNG in Texas on track to take in natgas again after Hurricane Beryl
Jul 15, 2024 5:22 AM

July 15 (Reuters) - U.S. liquefied natural gas export

company Freeport LNG's export plant in Texas was on track to

pull in small amounts of natural gas on Monday after shutting on

July 7 before Hurricane Beryl hit the Texas coast, according to

data from financial firm LSEG.

Freeport is one of the most-watched U.S. LNG export plants

because it has a history of swaying global gas prices when it

shuts.

Since Freeport shut, U.S. gas futures have declined

by about 2% to a two-month low of $2.26 per million British

thermal units (mmBtu).

The amount of natural gas flowing to Freeport was on track

to reach about 0.1 billion cubic feet per day (bcfd) on Monday,

up from near zero from July 7-14, according to LSEG data. Beryl

hit the Texas coast on July 8.

Energy traders, however, noted that Freeport was also on

track to pull in similar amounts of gas late last week but ended

up pulling in almost no gas.

Officials at Freeport were not immediately available for

comment but have said over the past several days that they had

no comment on the plant's status since announcing it would shut

before Beryl hit the Texas coast.

In the week before Freeport shut, the 2.1-bcfd plant was

pulling in an average of about 1.7 bcfd of gas, according to

LSEG data.

With Freeport down, feedgas to the seven big U.S. LNG export

plants, including Freeport, has averaged about 11.8 bcfd so far

in July, down from 12.8 bcfd in June and a monthly record high

of 14.7 bcfd in December 2023.

Freeport is the nation's third-biggest LNG export plant

behind Cheniere Energy's 4.5-bcfd Sabine Pass in

Louisiana and 2.4-bcfd Corpus Christi in Texas.

Each of Freeport's three liquefaction trains can turn about

0.7 bcfd of gas into LNG.

One billion cubic feet is enough gas to supply about 5

million U.S. homes for a day.

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