Freeport LNG recently announced the shutdown of its Train 2 liquefaction unit at its Texas plant, with Train 1 set to follow suit imminently for inspections and any necessary repairs. The decision to halt operations came after damage was discovered in one of the Train 3 motors during the January freeze, prompting proactive inspections on the other two trains. While Train 3 is currently online and producing LNG, Freeport anticipates completing inspections and repairs on Trains 1 and 2 by May.
The company also revealed plans to increase its production capacity by 10%, from 15 million metric tons a year to over 16.5 mtpa by June, following maintenance work. Furthermore, the upcoming operation of Train 4, which has obtained all regulatory approvals, is expected to boost LNG production capacity by an additional 25%.
Despite the outages at Freeport LNG, the reaction in gas markets remained subdued, with U.S. futures and European prices experiencing slight declines due to forecasts of mild weather and ample gas storage levels. Notably, previous outages at Freeport LNG have led to significant price fluctuations in both U.S. and European gas markets.