US natgas flow to Freeport LNG Export Plant in Texas reduced – LSEG data

According to data provided by financial firm LSEG, the amount of natural gases flowing to Freeport LNG’s Texas export plant was on course to reach a new one-month record low on Monday.

Freeport LNG has one of the highest levels of attention in the world, as the start-up and shutdown of its operation can cause huge price swings on global gas markets.

U.S. Gas Futures have turned negative in part due to the reduction in Freeport, after rising about 10% earlier in session to a 2-year high.

The price of gas futures in Europe at the Title Transfer Facility benchmark (TTF) was up 4%.

Gas prices in the U.S. typically fall when flows to Freeport decrease due to the lower demand from the export plant for the fuel. Prices in Europe usually increase because of a decline in LNG supplies to global markets.

Freeport officials declined to comment.

LSEG reported that the average amount of gas flowing into the eight major U.S. export LNG plants, including Freeport has risen to 15.0 billion cubic foot per day (bcfd), up from 14.4 bcfd during December. This compares to a monthly high of 14.7 billion cubic feet per day in December 2023.

A billion cubic feet of natural gas can supply five million U.S. households for one day.

The reduction in Freeport was the main reason for the daily decline of LNG feedgas from its all-time peak of 15.5 Bcfd to 14.4 Bcfd.

The 2.1-bcfd Freeport is on track to see a drop in flows to 1.4 billion cubic feet per day on Monday. This compares to 1.6 billion cubic feet per day on Sunday, and 2.1 million cubic feet on average over the previous seven days.

Separately the flow to Venture Global LNG’s 2.6 bcfd Plaquemines under construction plant in Louisiana was on track to reach a record of 1.0 bcfd Sunday and Monday. (Reporting and editing by Scott DiSavino)

(source: Reuters)