On June 8, 2022, Freeport LNG, the operator of one of the largest U.S. export plants producing LNG, announced that it will shut down its Texas Gulf Coast facility for at least three weeks following an explosion earlier that day.[1] Representatives of Freeport LNG have said that an investigation into the explosion has begun. A fire in the facility’s delivery system led to emissions of carbon monoxide, nitrous oxides, particulate matter, sulfur dioxide, and volatile organic compounds, according to an incident report filed with the state Commission on Environmental Quality on June 9, 2022. There were no injuries at the terminal, located roughly 70 miles from Houston, Texas. According to a representative for the U.S. Coast Guard, a security zone has been set up two miles east and west of the facility, closing that portion of the waterway to vessel traffic.
Freeport LNG provides about 20% of U.S. LNG processing. The company ships about four cargoes per week, and a three-week shutdown will take at least 1 million tonnes of LNG off the market. The facility processes gas for companies including BP, JERA, Kansai Electric, Osaka Gas, SK E&S, and TotalEnergies. The shutdown has had an impact on both domestic and international natural gas markets. Traders expect lower domestic demand due to more natural gas in the market, resulting in falling prices domestically. European gas prices were up to a fifth higher as traders feared that lower U.S. exports combined with reduced Russian supplies would further stress the market.
[1] https://www.reuters.com/business/energy/explosion-hits-freeport-lng-plant-us-natgas-prices-plunge-2022-06-08/