Hurricane Beryl caused an early shutdown of Freeport LNG. Facility has not resumed full production. At least 10 cargos have been canceled. Other interesting points
Are there LNG spot trading companies? When Golar LNG (GLNG) were more involved with shipping, many of their vessels traded spot. When the GLNG TFDE fleet was acquired by CLCO, the vessels gradually shifted to time-charters. CLCO may have a vessel rolling off charter in the current window. FLNG had a vessel that rolled off charter in early 2024. The vessel headed for its first dry dock, and then got a short term charter shortly after.
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I’m curious. Does Freeport use power from the grid? Or do they generate their own from natural gas?
Dow Chemical built the site to import LNG when gas was short and later converted it to export.
I suspect clear channel is the issue. And plant has no place to store gas without ships to offload. Some plants use large underground salt domes for storage.
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@pauleckler - I don’t have a definitive answer. But logically, at least some of their power has to come from the grid. I mean, they shut down all three trains. In theory, there must have been some basic power on the facility when this occurred.
The reason many old communities have tall smokestacks is they burned coal. Initially to run steam engines, later to make their own electricity. Initially because utility power was unreliable.
They say its most efficient to make steam at high pressure and use it at lower pressure. Large campuses often have a power plant that makes steam for heating and cooling. They also make electricity. Very clean with natural gas and easy.
For those who have natural gas contracts, making their own electricity is probably cheaper than utility power. No grid to support. But probably with grid connection for backup both ways.
Of course, Texas is different. The State is a standalone electric grid. So it might have its own deals with industrial entities.
All I know is that Freeport LNG has had three (full or partial) shutdowns of their LNG terminal, just in 2024.