Freeport LNG plant explosion

QUINTANA, Texas — Quintana Island near Freeport remains closed to visitors after an explosion rocked a natural gas plant Wednesday morning.

An explosion that rattled the Freeport liquefied natural gas (LNG) export terminal in Texas on Wednesday was brought under control quickly, paving the way.

Now, whenever a hurricane blows through the Gulf of Mexico, prices tend to decline, because it knocks out both LNG and industrial demand.” The Freeport facility can produce about 2 Bcf/d of LNG from three trains. Henry Hub prices nosedived across the curve after word of the explosion broke. Hotter weather, strong export demand, lower storage inventories and lagging domestic gas production have pushed Henry Hub higher in recent weeks. In addition to local emergency response crews, the U.S. Coast Guard was also on scene. Wednesday’s price gyrations “serve as another reminder that the Gulf Coast is much more a demand than a supply center,” said NGI’s Patrick Rau, director of strategy and research. The explosion caused a fire that sent black smoke billowing into the air. She added that there was no risk to the surrounding community. In addition, a spokesperson for the Texas Commission on Environmental Quality said Wednesday afternoon that personnel from the agency would also be at the site. [Want to know how global LNG demand impacts North American fundamentals? The Surfside Police Department said the fire had been contained by about 1 p.m. CT. Ahead of the incident, feed gas nominations for Wednesday on the pipelines serving the facility were slightly above 2 Bcf, according to NGI’s U.S. LNG Export Tracker. That’s near the terminal’s operational feed gas capacity of 2.6 Bcf/d.

The U.S. Coast Guard and emergency crews responded Wednesday to an explosion at an oil and gas facility, according to Surfside Police Department.

“An incident occurred at the Freeport LNG facility on Quintana Island at about 11:40 am. Your Surfside Beach Police Department Marine Division is actively assisting Port Freeport and the US Coast Guard on the waterways. An investigation is ongoing and updates will be provided soon.

HOUSTON (Reuters) -Freeport LNG, operator of one of the largest U.S. export plants producing liquefied natural gas (LNG), will shut for at least three weeks ...

They closed down about 6% at $8.699 per million British thermal units (mmBtu), having hit a near 14-year high of $9.664 mmBtu earlier in the day. U.S. LNG exports hit a record 9.7 bcfd last year, according to the U.S. Energy Information Administration (EIA). By clicking submit, you are agreeing to our Terms and Conditions & Privacy Policy. In Europe, the benchmark front month gas contract at the Dutch TTF hub rose 12.6% to 88.70 euros per megawatt/hour (MWh) in morning trade. A representative for the U.S. Coast Guard on Wednesday said a security zone had been set up two miles east and west of Freeport LNG's facility, closing that portion of the intracoastal waterway to vessel traffic. In March, 21 cargoes loaded at the Freeport facility, carrying an estimated 64 billion cubic feet of gas to destinations in Europe, South Korea and China, according to the U.S. Department of Energy. That's up from 15 cargoes in February and 19 in January. Analysts at data intelligence firm ICIS said in a tweet that 68% of Freeport LNG exports in the last three months went to the European Union and Britain. "It's going to mean one thing: shortages. The Freeport plant can process up to 2.1 billion cubic feet of natural gas per day (bcfd), and at full capacity can export 15 million tonnes per annum (MTPA) of the liquid gas. Traders said it is hard to assess the impact on JKM prices - which are widely used as a benchmark for Asian LNG as it depends on the size of damage and how much the plant would come back online. JKM prices hovered around $22.5 per metric million British thermal units (mmBtu). It remains at a discount of around $3/mmBtu to the TTF European ags prices. "This is a significant production outage at a major U.S facility," said Alex Munton, director of global gas and LNG at research firm Rapidan Energy. Freeport LNG ships about four cargoes per week and a three-week shutdown will take at least 1 million tonnes of LNG off the market, he said.

Freeport LNG terminal in Texas closed for at least three weeks as Europe seeks to cut Russia dependency.

Freeport LNG to shut down for at least three weeks after incident at Texas Gulf coast facility.

US LNG exports hit a record 9.7 bcfd last year, according to the US Energy Information Administration (EIA). The Freeport plant can process up to 2.1bn cubic ft of natural gas a day (bcfd) and at full capacity can export 15m tonnes per annum (MTPA) of the liquid gas. Freeport LNG, operator of one of the largest US export plants producing liquefied natural gas (LNG), will shut for at least three weeks after an explosion at its Texas Gulf coast facility, raising the risk of gas shortages in Europe.

U.S. LNG exporter Freeport LNG will shut down its export facility in Texas for at least three weeks because of an explosion incident.

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A fire at one of the world's biggest suppliers of liquefied natural gas has thrown Europe's fragile energy security into doubt and spooked global gas ...

These countries could ramp up their use of coal and oil as a result, Rystad Energy predicts. "This is going to take supply out of the market when it's badly needed. It plans to slash consumption Europe will be the most directly affected region. That process, though more complex than land transport, has become crucial to Europe meeting its energy demands during Russia's invasion of Ukraine. "This is going to tighten prompt supply, particularly in the Atlantic, as a majority of the cargoes have been destined for Europe," Ruth Liao, editor for LNG Americas at ICIS, told CNN Business.

The Freeport LNG facility processes 20 percent of U.S. exports and will be offline for at least three weeks, officials say.

“Risks are concentrated in the Gulf of Mexico by geography. Power grid failures in parts of Texas and Louisiana in recent years have put producers at a disadvantage in the past, and federal environmental officials have forecast an “above normal” Atlantic hurricane season. “There are always going to be risks when you have a hurricane-prone area that happens to be the site of most industrial activity for a given sector,” Book said. American energy producers already are bracing for a hot summer in the Southeast and a turbulent hurricane season. They traded as high as 92.05 euros ($97.87) per MWh earlier in the day. “This has affected the prices downstream as well.”