Freeport LNG liquefaction train at Texas export plant shuts
Adds no comment from Freeport LNG and provides more background and context in paragraphs 3-5
Nov 21 (Reuters) -One of three gas liquefactiontrains at Freeport LNG's export plant in Texas tripped offline on Wednesday, the company told state environmental regulators in a report on Thursday.
The gas processing unit known as Train3 tripped while operating due to an issue with a lube oil pump, causing an emissions event that lasted more than 11 hours from Wednesday evening into early Thursday morning, the company told regulators.
Freeport on Thursday declined to comment and didnot detail plans for the unit's restart in its report to the Texas Commission on Environmental Quality.
The second-largest U.S. LNG export facility has been theleast reliable of all U.S. LNG plants with several outages this year.
The company has however been benefiting from its debottlenecking project in the last month and for several days in November pulled record amounts of natural gas to turn into LNG.
U.S. natural gas futures NGc1 retreated after the news, halving an 8% gain that took prices to a one-year high earlier in the day. NGA/
Before news of the filing, gas traded at 11-month highs of around $15 per mmBtu at both the Dutch Title Transfer Facility benchmark in Europe TRNLTTFMc1 and the Japan-Korea Marker JKMc1 benchmark in Asia on worries about Russian supplies and the coming of colder winter weather. NG/EU
The U.S. price gain was partly driven by a data showing twoU.S. export plants wereon track to reachgas supply records. Supplies to theseven big U.S. operating plants were ontrack to hit an 11-month high of 14.5 billion cubic feet per day (bcfd) on Thursday, up from 14.1 bcfd on Wednesday.
The closure of one of Freeport's liquefactiontrains should reduce its gas flow. Each train at the 2.1-bcfd Freeport plant is capable of turning around 0.7 bcfd of gas into LNG daily.
One billion cubic feet is enough gas to supply about five million U.S. homes for a day.
Reporting by Scott DiSavino; Additional reporting by Curtis Williams in Houston; Editing by Cynthia Osterman and Andrea Ricci
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.