Freeport says output could hit 2 billion cubic feet per day in January, and full production could return in March 2023.
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MARIBEL Hill/Maribel Hill via REUTERS
Freeport LNG said on Friday that it hopes to begin an initial restart of its liquefied natural gas export facility next month, but full production may not be reached until March next year. 2023.
The plant, located south of Houston along Texas’s Gulf of Mexico coast, was closed following an explosion and fire in June. Just one of seven LNG export facilities in the United States, the facility’s closure reduced total U.S. LNG export capacity by 17% and contributed to a massive increase in U.S. natural gas inventories. .
“As of November 14, the reconstruction work required to commence initial operations, including the use of all three liquefaction trains, two LNG storage tanks and a pier, is approximately 90% complete. ,” the private company said in a statement. “Depending on Freeport LNG meeting its regulatory requirements, it is targeting initial production at the facility in mid-December.”
Freeport added that output could reach 2 billion cubic feet per day in January and full production could return in March 2023.
The company said in August that it hopes to restart the plant from early to mid-November, so this latest announcement reconfirms that goal will not be achieved.
Natural gas prices in the US have been more volatile than usual in recent weeks as investors speculated exactly when the LNG facility might restart. Prices fluctuated mid-morning in New York trading following Freeport’s announcement, with the contract for delivery last month recently dropping 2.4% to $6,219/mmBtu.
Michael Smith, founder, chairman and chief executive officer, said: “Our teams have been working diligently over the past few months alongside regulators to ensure our facility is up and running. safe again. “I am extremely grateful for their efforts.”
Write to Dan Molinski at [email protected]
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