Freeport LNG targets partial restart in October

Freeport LNG, a key US LNG export terminal south of Houston, Texas, plans to resume partial operations in October, about one month past a previously planned restart.

The 2 Bcf/d (57mn m³/d) LNG export terminal, which represents roughly 15pc of US LNG export capacity, had planned to resume some service 90 days after it shut down because of an 8 June fire. Freeport said today that it would resume operations in early October and return to full service at year-end.

The Pipeline and Hazardous Materials Safety Administration (PHMSA) sent a notice today to Freeport saying a preliminary investigation found that conditions at the terminal appeared unsafe. It also required Freeport to hire a third party to assess the damage and establish a plan for the return to service. PHMSA must approve the restart, according to the notice.

"A comprehensive review by Freeport LNG is already underway to ensure that all necessary corrective actions are identified and fully implemented prior to resuming operations," Freeport said, noting that it would continue to work with PHMSA, the US Coast Guard and the US Federal Energy Regulatory Commission to obtain all necessary approvals.

The shutdown of Freeport has upended the US gas market, leaving more supply available to meet power sector demand or to inject into gas storage. Prompt-month prices plunged to a three-month low today of $5.424/mmBtu, down by 17pc. Prices have shed 42pc since hitting a 13-year settlement high above $9/mmBtu on 6 June.

By Jason Womack