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Released January 25, 2023 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The operator of the Freeport liquefied natural gas (LNG) export facility in Texas has filed a request with federal regulators to take the steps necessary to return to normal functions. The facility has been idled since June.
Freeport LNG (Houston, Texas) closed its three-train facility in Texas in June following an explosion that was triggered by a pipeline failure. The 2 billion cubic feet per day (Bcf/d) from Freeport represented about 17% of total U.S. LNG capacity at the time of the closure.
The company hinted for much of December that it could restart the facility, with some preliminary signs emerging recently that the plant was ready to start receiving gas from inland shale basins.
On Monday, the company filed a notice with the Federal Energy Regulatory Commission that it was ready to start sending liquefied natural gas into the facility's piping system. Freeport can't start unless federal authorities sign off on it and the operator said additional approvals would be necessary before it can return to its nameplate capacity.
The company was already facing pressure from environmental advocates before the blast, with the Sierra Club protesting plans for another train. It could be a few weeks before operations resume, but it may be a case of just-in-time deliveries.
Bermuda-based maritime energy infrastructure company Hoegh LNG (Oslo, Norway) last week signed its second long-term charter agreement in the German market. Hoegh designated its floating storage regasification unit (FSRU) Hoegh Gannet for the contract. The vessel can load as much as 6 million cubic feet of gas in liquid form that will eventually find its way to the German grid.
Hoegh Gannet followed the arrival of Hoegh Esperanza, which made the debut delivery of LNG in Germany during the first week of January. Not to be outdone, French major TotalEnergies (NYSE:TTE) (Courbevoie, France) delivered supplies from the Neptune, which boasts a regasification capacity equivalent to around 5% of total German demand.
We know for sure that one of those vessels, Hoegh Esperanza, was laden with LNG derived from U.S. shale basins. The vessel received deliveries from the Calcasieu Pass export terminal in Louisiana in late December.
Liquefied natural gas from the likes of the United States are supporting efforts to improve energy security on the European continent. The bloc spent much of last year in a desperate pursuit of reserves from anyplace but Russia, which before the outbreak of war in Ukraine was the main supplier to the European Union.
Not only that, but the European economy, much like the United States, looks like it will avoid a deep recession in 2023, supporting further demand. The eurozone's Purchasing Managers' Index inched above 50.2 so far in January, the first sign of growth since June 2022.
LNG inventories in Europe, meanwhile, have been relatively stable, according to data from Gas Infrastructure Europe, albeit with a modest decline over the last few days. Rystad Energy, meanwhile, said it doesn't expect Freeport to restart until March, though it's forecasting a 12% year-on-year increase in exports of U.S.-sourced LNG this year.
For U.S. Energy Secretary Jennifer Granholm, that's a source of relief for Western allies.
"We are fortunate in that we have an abundance, obviously, of natural gas in this country. Our prices are low," she said. "But during times of challenge, we want to help our allies as well."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Freeport LNG (Houston, Texas) closed its three-train facility in Texas in June following an explosion that was triggered by a pipeline failure. The 2 billion cubic feet per day (Bcf/d) from Freeport represented about 17% of total U.S. LNG capacity at the time of the closure.
The company hinted for much of December that it could restart the facility, with some preliminary signs emerging recently that the plant was ready to start receiving gas from inland shale basins.
On Monday, the company filed a notice with the Federal Energy Regulatory Commission that it was ready to start sending liquefied natural gas into the facility's piping system. Freeport can't start unless federal authorities sign off on it and the operator said additional approvals would be necessary before it can return to its nameplate capacity.
The company was already facing pressure from environmental advocates before the blast, with the Sierra Club protesting plans for another train. It could be a few weeks before operations resume, but it may be a case of just-in-time deliveries.
Bermuda-based maritime energy infrastructure company Hoegh LNG (Oslo, Norway) last week signed its second long-term charter agreement in the German market. Hoegh designated its floating storage regasification unit (FSRU) Hoegh Gannet for the contract. The vessel can load as much as 6 million cubic feet of gas in liquid form that will eventually find its way to the German grid.
Hoegh Gannet followed the arrival of Hoegh Esperanza, which made the debut delivery of LNG in Germany during the first week of January. Not to be outdone, French major TotalEnergies (NYSE:TTE) (Courbevoie, France) delivered supplies from the Neptune, which boasts a regasification capacity equivalent to around 5% of total German demand.
We know for sure that one of those vessels, Hoegh Esperanza, was laden with LNG derived from U.S. shale basins. The vessel received deliveries from the Calcasieu Pass export terminal in Louisiana in late December.
Liquefied natural gas from the likes of the United States are supporting efforts to improve energy security on the European continent. The bloc spent much of last year in a desperate pursuit of reserves from anyplace but Russia, which before the outbreak of war in Ukraine was the main supplier to the European Union.
Not only that, but the European economy, much like the United States, looks like it will avoid a deep recession in 2023, supporting further demand. The eurozone's Purchasing Managers' Index inched above 50.2 so far in January, the first sign of growth since June 2022.
LNG inventories in Europe, meanwhile, have been relatively stable, according to data from Gas Infrastructure Europe, albeit with a modest decline over the last few days. Rystad Energy, meanwhile, said it doesn't expect Freeport to restart until March, though it's forecasting a 12% year-on-year increase in exports of U.S.-sourced LNG this year.
For U.S. Energy Secretary Jennifer Granholm, that's a source of relief for Western allies.
"We are fortunate in that we have an abundance, obviously, of natural gas in this country. Our prices are low," she said. "But during times of challenge, we want to help our allies as well."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
