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.