Freeport said production could reach 2 billion cubic feet per day in January, and full production could be back in March 2023.
Photo:
MARIBEL HILL/Maribel Hill via REUTERS
Freeport LNG said Friday it hopes to begin an initial restart of its liquefied natural gas export facility by next month, but full production may not be achieved until March 2023.
The plant, located just south of Houston along Texas’s Gulf of Mexico coast, has been closed since an explosion and fire in June. As just one of seven LNG export facilities in the U.S., its closure reduced total U.S LNG export capacity by 17%, and helped fuel a sharp rise in U.S. natural-gas inventories.
“As of November 14th, the reconstruction work necessary to commence initial operations, including utilization of all three liquefaction trains, two LNG storage tanks and one dock, was approximately 90% complete,” the privately owned company said in a statement. “Subject to Freeport LNG meeting its regulatory requirements, it is targeting initial production at the facility in mid-December.”
Freeport added that production could reach 2 billion cubic feet per day in January, and full production could be back in March 2023.
The company had said in August it was hoping to restart the plant by early to mid-November, so this latest announcement re-confirms that target won’t be met.
Natural-gas prices in the U.S. have been more volatile than normal in recent weeks as investors speculated as to exactly when the LNG facility may restart. Prices were choppy mid-morning in New York trade after the Freeport announcement, with the front-month contract recently down 2.4% at $6.219/mmBtu.
“Our teams have worked diligently over the last several months alongside regulators to ensure the safe restart of our facility,”
Michael Smith,
founder, chairman and chief executive, said in the statement. “I am immensely grateful for their efforts.”
Write to Dan Molinski at [email protected]
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Source: https://www.wsj.com/articles/freeport-lng-says-it-hopes-for-restart-of-texas-plant-in-december-11668793485?siteid=yhoof2&yptr=yahoo