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Main US LNG terminal cancels shipments, raising questions on restart


(Bloomberg) — Freeport LNG has canceled some upcoming shipments, adding to uncertainty about when the US liquefied natural gas exporter will resume shipments following an explosion this summer. last.

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At least two shipments scheduled for loading at the Texas port in late January and early February have been cancelled, according to traders with knowledge of the matter. The facility, which has been closed since June, was scheduled to restart in the second half of this month.

Freeport declined to comment on the cancellation.

Speculation about the timing of the reopening has led to intense volatility in the natural gas market. The facility is capable of exporting about 2% of daily U.S. gas production. Its seven-month shutdown meant that enough gas to supply all US export terminals for about a month was already being made available for domestic use, contributing to a build-up in inventories.

Prices for the commodity, used for industrial energy and home heating, have plummeted more than 40 percent in the past month as domestic stockpiles rise ahead of winter and warmer-than-average temperatures dent demand. . The resumption of exports could push prices back up by stopping the flow into local storage.

Since October, 19 tankers have listed Freeport LNG as a destination, but the majority have since moved the destination to another Gulf Coast port, according to Wood Mackenzie Ltd.

Electricity and natural gas spiked Wednesday to the facility at levels not seen since it was shut down, sparking optimism that the operator may be conducting testing operations to prepare to restart.

According to spokeswoman Heather Browne, Freeport still aims to resume operations in the second half of January.

(Updated with price history in the fifth paragraph.)

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