The second terminal for US Liquefied Gas lol will be shut down for several weeks. Europe in big trouble
According to a press release on Tuesday, Freeport LNG, the second terminal for liquefaction and dispatch of US gas, will not resume full operation of its Quintana Island liquefaction plant before the end of this year , after production is was stopped following an explosion that happened last week.
While China's LNG demand could calm the hot LNG market, news that the Texan Freeport LNG plant will not resume full operation until the end of 2022 could unsettle the market.
"At the moment, the completion of all necessary repairs and the return to full operation of the plant is not expected before the end of 2022," Freeport LNG said, adding that partial operations could be resumed within 90 days.
Houston-based Freeport LNG suffered an explosion on June 8, which caused the plant to shut down to assess damage and carry out repairs. Freeport LNG accounts for 20% of the total US LNG export capacity and is capable of processing 2.1 Bcf of gas per day. According to Freeport LNG, it is the seventh largest liquefaction plant in the world and the second in the United States.
Initially, however, the plant was expected to stand still for only a few weeks, but now the news has gotten worse.
Spot LNG prices for Asia and Europe rallied on news of the outage last week, but the reaction was tempered by poor Asian demand. Conversely, GAS has seen prices drop in the US as more methane is now available for the domestic market. News of a long transition period to restart the export plant could drive prices up, especially in light of Europe's increased thirst for LNG, which seeks to reduce its dependence on Russian gas and replenish its deposits before winter.
Europe is planning to increase the number of LMG import facilities, particularly in Germany and Italy, but without US gas these are useless investments.
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The article The second terminal for US Liquefied Gas lol will be shut down for several weeks. Europe in big trouble comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-secondo-terminal-per-iol-gas-liquefatto-usa-sara-fermo-per-lunghe-settimane-europa-nei-grossi-guai/ on Tue, 14 Jun 2022 19:45:40 +0000.