Oil and GasTop Stories
GBO_Freeport LNG-image

Freeport LNG to shut down for three weeks, disrupting global energy markets

It will likely impact European and Asian markets as well.

Freeport LNG recently faced an explosion at its Texas Gulf coast, due to which the operator of one of the largest US export plants generating liquefied natural gas (LNG) will be closed for at least three weeks.

According to the analysts, the fire disrupted the natural gas markets in the US on June 8. It will likely impact markets in Europe and Asia as well.

After assessing damage to the enormous facility, Freeport LNG, which produces roughly 20% of US LNG processing, announced the shutdown.

The analysts added that its closure removes a key supplier from markets already stressed by rebounding demand in China and European consumers boycotting Russian LNG over Moscow’s invasion of Ukraine.

According to Alex Munton, director of global gas and LNG at research firm Rapidan Energy, Freeport LNG ships four cargoes per week; a three-week production outage would remove at least one million tonnes of LNG from the market.

He further stated this would lead to a crippling shortage causing a rise in LNG prices.

The plant can process up to 2.1 billion cubic feet of natural gas daily and export 15 million tonnes of liquid gas per annum at max capacity. As per the US Energy Information Administration, US LNG exports reached a new high of 9.7 billion cubic feet per day in 2021.

Related posts

Indonesia’s INA strikes a partnership with DP World to develop ports

GBO Correspondent

South Korea truckers’ union threatens to interrupt computer chip production

GBO Correspondent

Jordan’s economy witnesses huge surge in investments during H1 2023

GBO Correspondent