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Freeport LNG in Texas to restart one train this week after Hurricane Beryl
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Freeport LNG in Texas to restart one train this week after Hurricane Beryl
Jul 15, 2024 12:05 PM

NEW YORK/HOUSTON, July 15 (Reuters) - Freeport LNG plans

to restart one of three liquefied natural gas trains this week

at its Texas facility after the company repairs some damage from

Hurricane Beryl, it said on Monday.

The plant, in Freeport, Texas, south of Houston, halted

operations on July 7 before Beryl hit the coast, causing

widespread power outages and wind damage.

The LNG exporter plans to restart the remaining two trains

shortly after the first resumes operation, but production will

be reduced while it continues repairs.

The second-largest U.S. LNG exporter said in a statement

that output would "steadily ramp up to full rates as these

repairs are completed."

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.

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

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

shuts due to the decreased demand.

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 July 7-14, according to LSEG data.

Energy traders, however, noted that Freeport was also on

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

up actually accepted almost no gas.

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

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

The Brazos Pilots Association, which services ships in the

port, said the Freeport LNG terminal was still closed and there

were draft restrictions in place.

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