On fire: a fire broke up at Freeport LNG, the second largest US LNG terminal, accounting for almost 20% of the country’s liquefaction capacity.
Fortunately no injuries were reported. fires are amongst the most devastating accidents for liquefaction plants. Prelude FLNG was out for several months, while Hammerfest LNG for almost two years.
According to the operator, Freeport LNG will be offline for at least 3 weeks.
This translates to ~1.1 bcm of lost LNG at a time, when the world needs every drop of the superchilled fuel.
Around half of Freeport LNG capacity is contracted with Asian buyers, whilst the other half feeds into the portfolio of BP and Total.
Year-to-date almost 60% of Freeport’s exports were sent to Europe.
What is your view? What will be the impact of the Freeport outage? Henry Hub prices dropped by 6% as more gas is now available for the domestic market. TTF and JKM, might take the opposite direction…
Source: Greg Molnar