U.S. natural-gas prices took a major nosedive on Tuesday after officials at Freeport LNG said the fire at its fuel-export terminal on Quintana Island, Texas was more extensive than first thought and the facility would be out of service “until late this year, greatly reducing export capacity”:
U.S. natural-gas prices plummeted after an LNG shipping facility in Texas said a fire last week would knock out the facility until late this year, greatly reducing export capacityhttps://t.co/wS3j4r9lfU
— Anthony DeRosa (@Anthony) June 14, 2022
From the company:
At this time, completion of all necessary repairs and a return to full plant operations is not expected until late 2022. Given the relatively contained area of the facility physically impacted by the incident, a resumption of partial operations is targeted to be achieved in approximately 90 days, once the safety and security of doing so can be assured, and all regulatory clearances are obtained.
That’s right. U.S. natural-gas prices will be lower now that we’re not subsidizing Europe and all of their dopey energy decisions over the past 20 years:
Natural gas was approaching $10, and then a huge LNG terminal blew up in Texas. Now it's $7. 📉
Americans will benefit from much lower prices as European exports are curtailed.
How about that?https://t.co/X3lLV6IWEx
— Ryan Maue (@RyanMaue) June 14, 2022
Good!
Natural gas tumbled more than 16% today for the worst day going back to Nov. 2018
Experts pointed to fears of a sudden glut with Freeport LNG saying its facility that caught fire last week will be offline for longer than expected https://t.co/OmhIvsDSIz #OOTT #ONGT #naturalgas pic.twitter.com/ChSzCbnjUk
— Pippa Stevens (@PippaStevens13) June 14, 2022
Well, maybe not this but we should stop exporting so much gas, especially with winter on the way:
Recommended
Imma need an LNG plant to blow up just before August when my contact is up too.
— mitrebox (@mitrebox) June 14, 2022
And global natural-gas prices are expected to “soar”:
Oh dear! Freeport LNG says that its plant hit by a fire last week won't resume full operations until "late 2022", with "partial" operations resuming perhaps in 90 days.
US gas prices to drop, but expect global LNG prices to soar | #OTNG Full statement: https://t.co/Q6uxSy9VGR
— Javier Blas (@JavierBlas) June 14, 2022
This should be good news for Europeans as a lack of natural gas will help them achieve their climate goals:
And natural gas gets cheaper for the U.S., since exports are going to be constrained for longer, and more expensive in Europe, where prices have surged nearly 20% on the day. Freeport accounted for almost one-fifth of all overseas gas shipments from the U.S. in May. https://t.co/ALgO2hoaai
— Lisa Abramowicz (@lisaabramowicz1) June 14, 2022
Europe, you asked for this when you outsourced your energy policies to a Swedish teen:
"The International Energy Agency reckons that about 70m tonnes of methane were leaked into the atmosphere in 2020, roughly equivalent to the annual energy-related CO2 emissions of the EU."
Natural gas? Call it what it is: Fossil gas. #MindTheGap https://t.co/R9E0fdofBN
— Greta Thunberg (@GretaThunberg) April 27, 2021
And shouldn’t this be a bigger story?
Freeport, one of the largest US plants exporting liquefied natural gas, exploded on Wednesday.
Freeport represents a critical piece of infrastructure in Europe's divestment from Russian oil. Yet this story is almost no where in the mainsteam news, so let's dig in. pic.twitter.com/uMBEQKGxqW
— Will Manidis (@WillManidis) June 13, 2022
And:
Freeport is represents over 20% of US natural gas exports. A ten billion plus+ capex project, the plant processes two billion cubic feet a day of pipeline-quality natural gas.
the plant spits off $7.4b in revenue yearly. 80% of its shipments are direct to Europe. pic.twitter.com/kNp9AlhPTB
— Will Manidis (@WillManidis) June 13, 2022
***
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