Freeport LNG Delays Restart Date, Extending Outage after Fire

The latest outage estimate for Freeport LNG’s Texas plant is significantly longer than what was initially reported and could leave some markets with less than anticipated gas in storage heading into winter, analysts said.

Pietro Donatello Pitts, Hart Energy
Freeport LNG Delays Restart Date, Extending Outage after Fire

An ariel view of the Excelsior ship docked at the Freeport LNG terminal near Houston. The Freeport LNG facility normally exports about 2 Bcf/d and is responsible for roughly 15%-16% of total U.S. feedgas demand. (Source: Freeport LNG)

Freeport LNG on June 14 reported estimates that its Texas plant, out of service following a fire last week, would remain fully offline until at least September.

The outage estimate is significantly longer than the three weeks that was initially reported, according to analysts at Enverus Intelligence Research.

“The extended outage is likely to help reduce the U.S. storage deficit to normal levels (currently ~300 Bcf below the 5-year average),” the Enverus analysts wrote June 14 in a research note to clients, adding that “assuming normal weather, ~175 Bcf more could be added to U.S. inventories.”

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