Freeport LNG Shocks Markets
June 20, 2022
The U.S. natural gas market is now over-supplied by 2 bcf/d. The recent fire at Freeport LNG has returned this volume to the local market. Freeport LNG represents nearly 20% of U.S. LNG processing capacity and has been a key source of gas to European markets in the face of Russian gas restrictions. European day-ahead prices jumped by 21% after the event and U.S. spot prices fell more than $2.00/mmbtu in the four days since the explosion. The plant will be fully offline until September.