NatGas Prices Drop After Freeport LNG Train Shutdown

Freeport LNG[1]'s Train 3, one of three operational trains at the southeast Texas coastal plant, suffered a mechanical problem and shut down for 11 hours, from the evening of Nov.

20 to the early morning of Nov.

21. An oil lube pump issue caused an emissions event, according to a report filed with the Texas Commission on Environmental Quality. Freeport LNG is the second largest U.S.

LNG plant in the U.S., and natural gas prices fell following the announcement, the day after setting a high for the year.

By mid-day Nov.

22, Henry Hub front-month futures price had fallen £0.21 from Nov.

21, hitting £3.13/MMbtu.

References

  1. ^ Freeport LNG (www.hartenergy.com)