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Released June 09, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Freeport LNG's (Houston, Texas) three liquefied natural gas (LNG) liquefaction lines are to remain down at least three weeks following an explosion on Wednesday, placing a strain on shipments to Europe.
A small explosion occurred about 11:30 a.m. Wednesday at the Freeport LNG site. The blast, which caused no injuries, occurred on piping that extends from the liquefaction trains to the storage tanks. Industrial Info's Global Market Intelligence (GMI) platform reports there does not appear to be any damage to the liquefaction trains nor the storage tanks or loading berths. The plant is expected to remain down as an investigation into the cause of the explosion as well as repairs and inspections take place.
Subscribers to Industrial Info's GMI Oil & Gas Production Plant Database can click here for the Freeport LNG plant profile.
Freeport LNG is the seventh-largest LNG export company in the world and the second-largest in the U.S., according to its website. Located in Brazoria County, Texas, Freeport LNG's three liquefaction lines can process about 2.1 billion cubic feet per day (Bcf/d) of natural gas to produce more than 15 million metric tons per year. It provides about 20% of U.S. LNG processing. Tolling customers include JERA (Tokyo, Japan), BP plc (NYSE:BP) (London, England), TotalEnergies SE (NYSE:TTE) (Courbevoie, France) and SK E&S (Seoul, South Korea).
European gas prices shot up about 20% on Thursday in response to the outage, as markets were stressed due to the cut in Russian gas supplies. In March, 21 cargoes loaded at the Freeport facility, representing 64 billion cubic feet of gas, according to the U.S. Department of Energy (DOE).
During the first four months of 2022, the U.S. exported 74% of its LNG to Europe, compared with an annual average of 34% last year, according to the U.S. Energy Information Administration's (EIA) recently released Natural Gas Monthly and EIA estimates for April 2022. In 2020 and 2021, Asia had been the main destination for U.S. LNG exports, accounting for almost half of the total exports.
U.S. LNG exports averaged 11.5 Bcf/d during the first four months of 2022, an 18% increase compared with the 2021 annual average, the EIA said. Since December 2021, the European Union (EU) and the U.K. have been importing record-high levels of LNG, primarily because of low natural gas storage inventories.
The U.S. became the largest LNG supplier to the EU and U.K. in 2021, accounting for 26% of total imports. In the first four months of 2022, LNG imports from the U.S. to the EU and the U.K. have more than tripled, compared with 2021, averaging 7.3 Bcf/d and accounting for 49% of total imports, according to data from CEDIGAZ. LNG imports from Russia and Qatar accounted for 14% each (2.1 Bcf/d).
Freeport LNG was founded in 2002, and began construction on the three liquefaction trains in 2014. Commercial operations were achieved for all three trains as of 2019-2020.
Freeport LNG's fourth liquefaction train has received regulatory approvals and is fully permitted, according to the company. Train 4, which will be similar in capacity to the existing trains, is expected to start commercial operations in 2026. Subscribers to Industrial Info's GMI Oil & Gas Production Project Database can click here for a detailed project report.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
A small explosion occurred about 11:30 a.m. Wednesday at the Freeport LNG site. The blast, which caused no injuries, occurred on piping that extends from the liquefaction trains to the storage tanks. Industrial Info's Global Market Intelligence (GMI) platform reports there does not appear to be any damage to the liquefaction trains nor the storage tanks or loading berths. The plant is expected to remain down as an investigation into the cause of the explosion as well as repairs and inspections take place.
Subscribers to Industrial Info's GMI Oil & Gas Production Plant Database can click here for the Freeport LNG plant profile.
Freeport LNG is the seventh-largest LNG export company in the world and the second-largest in the U.S., according to its website. Located in Brazoria County, Texas, Freeport LNG's three liquefaction lines can process about 2.1 billion cubic feet per day (Bcf/d) of natural gas to produce more than 15 million metric tons per year. It provides about 20% of U.S. LNG processing. Tolling customers include JERA (Tokyo, Japan), BP plc (NYSE:BP) (London, England), TotalEnergies SE (NYSE:TTE) (Courbevoie, France) and SK E&S (Seoul, South Korea).
European gas prices shot up about 20% on Thursday in response to the outage, as markets were stressed due to the cut in Russian gas supplies. In March, 21 cargoes loaded at the Freeport facility, representing 64 billion cubic feet of gas, according to the U.S. Department of Energy (DOE).
During the first four months of 2022, the U.S. exported 74% of its LNG to Europe, compared with an annual average of 34% last year, according to the U.S. Energy Information Administration's (EIA) recently released Natural Gas Monthly and EIA estimates for April 2022. In 2020 and 2021, Asia had been the main destination for U.S. LNG exports, accounting for almost half of the total exports.
U.S. LNG exports averaged 11.5 Bcf/d during the first four months of 2022, an 18% increase compared with the 2021 annual average, the EIA said. Since December 2021, the European Union (EU) and the U.K. have been importing record-high levels of LNG, primarily because of low natural gas storage inventories.
The U.S. became the largest LNG supplier to the EU and U.K. in 2021, accounting for 26% of total imports. In the first four months of 2022, LNG imports from the U.S. to the EU and the U.K. have more than tripled, compared with 2021, averaging 7.3 Bcf/d and accounting for 49% of total imports, according to data from CEDIGAZ. LNG imports from Russia and Qatar accounted for 14% each (2.1 Bcf/d).
Freeport LNG was founded in 2002, and began construction on the three liquefaction trains in 2014. Commercial operations were achieved for all three trains as of 2019-2020.
Freeport LNG's fourth liquefaction train has received regulatory approvals and is fully permitted, according to the company. Train 4, which will be similar in capacity to the existing trains, is expected to start commercial operations in 2026. Subscribers to Industrial Info's GMI Oil & Gas Production Project Database can click here for a detailed project report.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
