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.

For more:
https://www.reuters.com/markets/commodities/freeport-lng-extends-outage-after-fire-targets-year-end-full-operations-2022-06-14/