FT: Freeport LNG Terminal Catches Fire in TX

Financial Times: Fire at US natural gas plant deals blow to exports

Subheadline: Freeport LNG terminal in Texas closed for at least three weeks as Europe seeks to cut Russia dependency


One of the biggest US liquefied natural gas plants will be closed for at least three weeks after an explosion, dealing a blow to exports at a time when the industry is trying to boost supplies to Europe.

Freeport LNG said on Wednesday that it had been forced to halt its operations, which account for almost a fifth of US liquefaction capacity, a process by which natural gas is supercooled and loaded on to tankers for delivery overseas.

The effect on $NATGAS is counter-intuitive to how I would have imagined the move in futures. I learn something every day in macro:

US natural gas prices fell sharply following the incident as traders fretted over the loss of a significant slice of the market. US futures for July delivery were trading at about $8.17 per million British thermal units on Wednesday evening, down 12 per cent from Tuesday’s settlement price, as traders contemplated domestic supplies being trapped onshore.