Freeport LNG files for restart, waiting for regulatory response

Freeport LNG confirmed to Oilprice.com on Monday that repairs had been completed at its liquefied natural gas export facility, which has been offline since June, and that a request to restart by introducing LNG into the piping system had been submitted to regulators.

In the regulatory filing, Freeport LNG asked regulators for a response to their restart request by Tuesday.

The Texas-based Freeport LNG export terminal has been offline since a June explosion and subsequent fire.

Rystad Energy speculates that Freeport LNG may not restart until March.

In a statement to Rig zone last week Emily McClain, Vice President of Rystad Energy, said, “The Freeport LNG restart will support US LNG exports this year, but the timing remains uncertain”. Regarding a “full ramp-up,” McClain said it wasn’t expected until “midway through the year.”

However, speculation remains just that, with Freeport LNG sticking to its original schedule.

On January 11, Freeport LNG told Oilprice.com there was “no change in our restart timeline. We are still targeting the second half of this month for the safe, initial restart of our liquefaction plant, pending regulatory approvals.”

Freeport, responsible for some 20% of total LNG exports from the United States and sales of $35 billion in the first nine months of 2022, served Europe well last year as the continent struggled to navigate a growing energy crisis this winter. suppress.

The imminent restart comes as natural gas prices recovered slightly on Monday with a 10% jump, but not until after that lose more than 7% last week and more than 50% in the past four weeks, prompting the Chesapeake CEO to warn that the industry may need to moderate supply growth.

Demand for natural gas is falling compared to last year’s peak, driven by Europe. But now that European storage is full and the winter is turning out to be much milder than expected, demand is lagging.

By Charles Kennedy for Oilprice.com

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