The Briefing Room
General Category => Science, Technology and Knowledge => Energy => Topic started by: Free Vulcan on June 15, 2022, 11:02:37 am
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(https://images.wsj.net/im-563842?width=860&size=1.5533980582524272)
One of the biggest U.S. LNG exporters says fire damage will prevent it from returning to full capacity until late this year
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 capacity.
Natural-gas futures for July delivery fell more than 16% to end Tuesday at $7.189 per million British thermal units, the latest whipsaw move in the market for the power-generation and heating fuel. Futures prices for deliveries through February shed at least 10% on the day, suggesting greatly diminished fears about shortages this coming winter.
Natural gas has been a big driver of inflation this year, with the highest prices in years adding to the cost of heating, cooling and powering homes and businesses as well as manufacturing steel, cement, glass, plastics and fertilizer. Prices had hit $9.60 just before the fire at the LNG plant on Wednesday, which was about triple what gas cost a year earlier. Since the fire, prices have dropped 25% from that intraday high.
https://www.wsj.com/articles/natural-gas-prices-plunge-after-extended-outage-at-texas-lng-facility-11655235895
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Finally a fire that works in our favor.
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Unfortunately this plays into the non-export crowd thinking, leading potentially to laws limiting/banning future exports of gas
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Freeport LNG. I wonder which safety control system they had in place.