Natural gas markets already are reacting to speculation that startup of the damaged Freeport liquefied natural gas export terminal in Texas, which accounts for 20% of American shipments and now about 10% to Europe, may be further delayed by federal regulators. The facility south of Galveston has been closed since a June 8 explosion and fire.
The U.S. Energy Information Administration on July 11 said the outlook for U.S. LNG exports fell by 6% since the incident, with the agency now projecting an average of 10.9 billion cu ft exported per day, down from 11.9 billion foreseen last month. But the agency predicts output could rise to an average of 12.7 billion cu ft per day when Freeport returns to full service in 2023, if the projected date holds.