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Freeport LNG in Texas set to pull in more natgas after Hurricane Beryl
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Freeport LNG in Texas set to pull in more natgas after Hurricane Beryl
Jul 16, 2024 6:00 AM

July 16 (Reuters) - U.S. liquefied natural gas (LNG)

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

to pull in more natural gas on Tuesday 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

in the world because it has a history of swaying global gas

prices when it shuts.

On Monday, U.S. gas futures dropped about 7% to a

10-week low after it became clear to the market that Freeport

would likely continue to operate at less than full power for

several more days.

Freeport said on Monday that it would restart one of the

plant's three liquefaction trains this week and the other two

shortly after repairing damage sustained in the hurricane.

That is a later return to full power than many market

watchers were expecting. Energy traders said U.S. gas demand and

prices would remain reduced until all of the trains at Freeport

return to service.

The amount of gas flowing to Freeport was on track to reach

about 0.4 billion cubic feet per day (bcfd) on Tuesday, up from

near zero from July 7-15, according to LSEG data. Beryl hit the

Texas coast on July 8. Officials at Freeport had no comment

on the latest expected increase in feedgas.

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

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

data. But with Freeport starting to take in more gas,

feedgas to the seven big U.S. LNG export plants, including

Freeport, was on track to rise to a 10-day high of 11.5 bcfd on

Tuesday, up from 11.2 bcfd on Monday and an average of 11.3 bcfd

over the prior seven days.

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 five million U.S. homes for a day.

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