UPDATE 1-Freeport LNG on track to stop getting natgas at Texas export plant

(Adds analyst comment, details) Feb 7 (Reuters) - Freeport LNG's long-idled liquefied natural gas (LNG) export plant in Texas was on track to receive no natural gas from pipelines on Tuesday after receiving small amounts of fuel over the past 12 days, according to Refinitiv data. Since Jan. 26 when federal regulators approved the company's plan to start cooling some pipes, the plant has pulled in an average of 34 million cubic feet per day of pipeline gas. That is a fraction of what the plant can pull in when operating at full power. Freeport can turn about 2.1 billion cubic feet of gas into LNG each day, which is about 2% of total U.S. daily gas production. Many analysts have said they do not expect the plant to return to full power until mid March or later. A couple of Freeport's customers -

JERA and

Osaka Gas - have said they don't expect to get LNG from the plant until after March.

Last week, Freeport told Texas regulators it would

start sending gas to one of three liquefaction trains, which turn gas into LNG.

The plant, however, is waiting for permission from federal regulators to

start loading LNG on ships to free up space in its storage tanks.

Freeport, the second biggest U.S. LNG export plant, shut after a fire in June 2022. The energy market expects gas prices to rise once the plant starts producing LNG again.

But gas futures were trading near a 25-month low mostly because mild weather this winter has kept heating demand for the fuel low.

Federal regulators will hold a public meeting on Freeport on Feb. 11 to provide members of the community and other interested parties an opportunity to voice concerns about Freeport's restart plans and get an update on what's happening at the plant.
(Reporting by Scott DiSavino, Editing by Louise Heavens and Chizu Nomiyama)

Messaging: scott.disavino.thomsonreuters.com@reuters.net))

Reuters

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UPDATE 1-Freeport LNG on track to stop getting natgas at Texas export plant

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