Freeport LNG Plans Phased Restart After Hurricane Damage

(Bloomberg) -- Freeport LNG is restarting its Texas natural gas export facility on a phased basis after Hurricane Beryl damaged part of the plant.  

“We are completing initial repairs on the damage sustained to our fin fan air coolers in the hurricane,” spokeswoman Heather Browne wrote in an email to Bloomberg, referring to equipment that chills gas into liquid form.

The company plans to restart its first production line this week, with the intent to start the remaining units shortly thereafter, Browne said. Still, output is expected to be at reduced rates, she said, without saying how long the reduction would last. The plant is designed to produce 15 million metric tons of LNG annually. 

Beryl slammed into Texas a week ago, causing widespread power losses. At least four LNG cargoes were cancelled during Freeport’s outage. The restart has been closely watched as demand for the fuel is expected to ramp up in Europe and Asia, and the Texas facility is a significant draw on domestic gas supplies. 

The facility, one of the largest in the US, can liquefy as much as 2% of US daily gas production. The plant’s outages — which occur more than any other US LNG plant — can at times move prices in the US and globally.

(Updates with closing price for US natural gas futures in box.)

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