Freeport LNG to close for weeks following explosion: press

US LNG export facility Freeport LNG will be taken offline for at least three weeks after an explosion at the facility, Reuters reported June 9, citing local news source Click2Houston.

The cause of the explosion is unknown, but there were no reported injuries, and the production site is now secure. Freeport LNG accounts for around 20% of US LNG processing capacity, meaning a three-week suspension will significantly affect European supplies.

US LNG exports are trending higher after Venture Global LNG launched its Calcasieu Pass terminal in Louisiana earlier this year.  The biggest US exporter, Cheniere Energy, has also ramped production at its Sabine Pass export terminal.

LNG exports from the US in March reached their highest since records began, at 7.7mn mt. They fell 8% to 7.1mn metric tons in April, rebounding to 7.3mn mt last month.

The 15mn metric tons/year Freeport LNG plant is located around 112km south of Houston, on the Texas Gulf Coast in Quintana.  Freeport shipped its first LNG cargo in 2019 and is currently being expanded with a fourth liquefaction unit, to bring capacity above 20mn metric tons/year.

Market factors arising from the COVID-19 pandemic disrupted Freeport's expansion schedule, prompting a three-year extension of the regulatory deadline for delivery. The new licence from US energy regulator Ferc states Freeport must deliver the expansion by May 17, 2026.