Freeport LNG Texas Terminal Outage Hurts Europe, May Help African Exporters

Global LNG buyers—especially in Europe—and some U.S. shale producers have been reeling since a June 8 blast shut Freeport LNG’s massive export terminal in Texas.

Reverberations also are being felt in Africa, where LNG producers could get a boost from the months-long shutdown to repair the Texas terminal, analysts said, noting that European buyers moving away from Russian gas and pipeline operators have few supply alternatives.

The Freeport facility accounts for roughly 20% of U.S. LNG processing capacity, drawing 2 Bcf/d of natural gas from U.S. shale producers.