US natural gas prices surged Wednesday and continued increasing Thursday morning after the Freeport LNG Terminal in Quintana, Texas, received regulatory approval to reopen in October.
The Freeport plant, which closed in June due to an explosion, received regulatory approval from the Pipeline and Hazardous Materials Safety Administration to ensure the plant can “safely and confidently” resume operations of its liquefaction plant, reported Bloomberg.
“Those initial operations are expected to consist of three liquefaction trains, two LNG storage tanks and one LNG loading dock, which the company believes will enable delivery of approximately 2 BCF per day of LNG, enough to support its existing long-term customer agreements,” the company said.
The shuttering of the facility in late June reduced total liquefied natural gas export capacity by 2B cf/day, or 17% of total US LNG capacity, much of which was sent to Europe.
“Freeport LNG is one of seven LNG export facilities operating in the United States,”