Explosion at key gas export plant in the US rocks global energy markets

Freeport LNG, operator of one of the largest US export plants producing liquefied natural gas (LNG), will shut for at least three weeks following an explosion at its Texas Gulf Coast facility.

The fire rocked US natural gas markets on Wednesday and the impact is likely to spread through Europe and Asia markets, analysts said.

Freeport LNG, which provides around 20% of US LNG processing, disclosed the shutdown late on Wednesday after appraising damage to the massive facility.

Its closure takes away a major supplier to markets already strained by European buyers shunning Russian LNG over its invasion of Ukraine – actions that Moscow calls a “special operation” – and by resurgent demand in China, analysts said.

“This is a significant production outage at a major US facility,” said Alex Munton, director of global gas and LNG at research firm Rapidan Energy. Freeport LNG ships about four cargoes per week and a three-week shutdown will take at least one million tonnes of LNG off the market, he said.

“It’s going to mean one thing: shortages. The competition for spot LNG is going to drive global LNG prices higher,” Munton said.

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About the Author: NC Scout

NC Scout is the nom de guerre of a former Infantry Scout and Sergeant in one of the Army’s best Reconnaissance Units. He has combat tours in both Iraq and Afghanistan. He teaches a series of courses focusing on small unit skills rarely if ever taught anywhere else in the prepping and survival field, including his RTO Course which focuses on small unit communications. In his free time he is an avid hunter, bushcrafter, writer, long range shooter, prepper, amateur radio operator and Libertarian activist. He can be contacted at [email protected] or via his blog at brushbeater.wordpress.com .

One Comment

  1. Überdeplorable Psychedelic Cat Grass June 9, 2022 at 23:19

    How convenient…. If anyone cannot see this for the attempted takedown of the country that it is, I can’t help you at this point. All of the food processing plants that have gone up in flames, the government not allowing drilling in federal lands, and this…

    Though it is not liquefied natural gas, a business partner of my dad‘s years ago by 55 gallon containers for gas, filled them up with regular unleaded, and wrote diesel on the outside of the containers so as to dissuade anyone from thinking of stealing them from his cabin. It worked. Just a thought that might help some people who have some money and want to stock up on gas. Scout has mentioned fuel additives before in older posts to ensure it is still usable months down the line

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