It was last week in Freeport in Texas, one of the largest US terminals for exporting liquefied natural gas (LNG), It was closed after the explosion and fire.
The plant accounts for about a fifth of US LNG exports and about 10 percent of Europe’s imports this year.
At the time, the lounge was said to be closed for at least three weeks. The shutdown had an immediate impact on gas prices in both Europe and the United States.
The plant operator now says it could take a full three months to get the plant partially operational. That’s much longer than market participants had imagined, according to Bloomberg News. Full capacity is not expected until the end of 2022.
The new schedule also had a big impact on gas prices this time around:
- In the US, the price of gas for delivery in New York next month fell as much as 19 percent on Tuesday. The reason prices are falling in the US is that supply is increasing because the gas is not coming out of the Freeport plant. It is now feared that the gas will instead remain in US shale formations.
- In Europe, gas prices, as measured by the benchmark in the Netherlands, rose about 15 percent on Tuesday – also due to announced cuts to delivery from energy company Gazprom. Since the plant was first closed, European gas prices have risen 23.5 percent.
- In Asia, LNG prices with delivery surged to their highest level in more than two months. Bloomberg wrote that Asian buyers are now competing with Europe to secure winter spare capacity.
The disappointing news from the US came on the same day that Russian energy company Gazprom said it would do so Reduce gas exports by 40% Through the German-Russian Nord Stream gas pipeline. It was also burned due to gas prices on Tuesday.
According to Gazprom, the reason for the reduction is the delay in equipment maintenance.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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