Freeport LNG Feedgas Rebound Causes 1% Jump in US Gas Futures

Freeport LNG's export plant in Texas saw an uptick in natural gas deliveries on July 24 after one of three liquefaction trains shut down due to a compressor issue. The train, Train 1, was offline since July 23.

The shutdown and subsequent recovery at the facility have historically caused price swings in global gas markets. When Freeport's demand for natural gas decreases, U.S. gas prices tend to drop, but when the trains restart, prices typically rise as demand increases.

On July 24, U.S. gas futures traded up around 1% due to increased feedgas to Freeport. According to LSEG data, gas flows to Freeport were expected to reach 1.3 billion cubic feet per day on July 24, up from 0.9 billion cubic feet per day the previous day.