The combination of those sanctions and the Freeport LNG shutdown drove gas prices to record highs in Europe and Asia during summer 2022. Total gas flows to all seven big U.S. LNG export plants rose to an average of 13.1 bcfd so far in March, up from 12.8 bcfd in February. That would top the monthly record of 12.9 bcfd in March 2022, before Freeport LNG shut. (Reporting by Scott DiSavino, Editing by Mark Potter and Louise Heavens)
Messaging: scott.disavino.thomsonreuters.com@reuters.net)) (Adds company no comment)
March 29 (Reuters) - The amount of natural gas flowing
to U.S. liquefied natural gas (LNG) company Freeport LNG's
export plant in Texas was on track to hit its highest on
Wednesday since shutting in June 2022, according to data
provider Refinitiv.
The plant has been slowly pulling in more feedgas since it
exited an eight-month outage in February.
Gas flows to Freeport LNG were on track to rise to 1.8
billion cubic feet per day (bcfd) on Wednesday, up from 1.6 bcfd
on Tuesday.
Energy traders said gas flows at that level likely signal
Freeport LNG started the third of three liquefaction trains at
the plant. Liquefaction trains turn gas into LNG for export.
Freeport LNG had no comment on the increase in gas flows to
the plant.
When operating at full power, Freeport LNG can turn
about 2.1 bcfd of gas into LNG.
One billion cubic feet of gas is enough to supply about five
million U.S. homes for a day.
On March 8, Freeport LNG anticipated feedgas flows would
rise and fall as the plant returns to full production over the
"next few weeks."
Sources familiar with the plant said Freeport LNG had
canceled some cargoes for March due to issues with one train,
and noted the facility could take longer than the company
expects to return to full service.
Demand for U.S. LNG increased after several countries slowed
purchases of Russian energy and imposed sanctions on Moscow
after Russia's invasion of Ukraine in February 2022.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.