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US natural gas flows to Freeport LNG in Texas rise to the highest level in two months

US natural gas flows to Freeport LNG in Texas rise to the highest level in two months

U.S. Natural Gas Flows to Freeport LNG in Texas Rise to Two-Month High – LSEG

The amount of natural gas flowing into Freeport LNG’s export plant in Texas rose to the highest level in two months on Sunday. Energy traders said this was a sign that the plant had suffered a series of disruptions in the past month.

The start-ups and shutdowns of Freeport and other U.S. liquefied natural gas (LNG) export plants often have a major impact on global gas prices.

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U.S. gas futures on the Henry Hub benchmark in Louisiana have risen about 33% over the past seven days, partly due to a surge in fuel demand from Freeport after it emerged from an outage early last week.

US gas futures traded at a 14-week high of $2.19 per million British thermal units (mmBtu) on Monday.

Total feed gas volumes for all seven major U.S. LNG export plants increased from an average of 11.9 billion cubic feet per day (bcfd) in April to 12.4 billion cubic feet per day (bcfd) so far in May with the return of Freeport , according to data from financial firm LSEG. That compares with a monthly record of 14.7 bcfd in December.

Gas flowing into the Freeport of 2.1 bcfd reached a two-month high of 1.4 bcfd on Sunday, up from 1.2 bcfd on Saturday and an average of just 0.4 bcfd in the month of April . From April 24 to 27 there were virtually no gas flows to the power plant.

Energy traders said they believe at least two trains were running at the plant due to the amount of feed gas currently flowing into the plant.

Officials at Freeport were not immediately available to comment on the latest increase in feed gas.

Each Freeport train can convert approximately 0.7 bcfd of gas into LNG.

One billion cubic meters of gas is enough to supply approximately five million American homes with gas for a day.

In late March, Freeport said it expected two of the three liquefaction trains at the plant, Trains 1 and 2, to remain closed until May for inspections and repairs, while Train 3 was running. Train 3 closed around April 11.

(Reporting by Scott DiSavino; Editing by Andrea Ricci)