Freeport LNG Takes Export Train Offline in Texas

Freeport LNG temporarily shut one liquefaction train at its Texas export facility for maintenance, reducing feedgas demand at one of the world’s most closely watched LNG plants.

(Reuters) — Freeport LNG said on May 13 that it was taking one of the three liquefaction trains at its liquefied natural gas (LNG) export plant in Texas offline for scheduled maintenance.

"We anticipate the train's safe return to service in the next several weeks," a spokeswoman for the company told Reuters in an email.

Freeport is one of the world's most closely watched LNG export plants because the shutdown and startup of the facility have previously caused massive price swings in global gas markets.

When Freeport shuts, U.S. gas prices usually drop because the plant's demand for the fuel declines, and when liquefaction trains at Freeport restart, U.S. prices usually rise as the plant consumes more gas.

So far on May 13, however, U.S. gas futures were up about 1% despite the feedgas decline at Freeport, which was expected. U.S. gas prices were up due primarily to a decline in output over the past several days, according to energy analysts.

Data from financial firm LSEG showed gas flows to Freeport were on track to decline to 1.6 billion cubic feet per day on May 13, down from 1.9 billion cubic feet per day over the prior four days.

The three liquefaction trains at Freeport are capable of turning about 2.4 billion cubic feet per day of gas into LNG.

One billion cubic feet of gas is enough to supply about 5 million U.S. homes for a day.