Deep Freeze Forces U.S. LNG Exporters to Cancel, Delay Cargoes

Deep Freeze Forces U.S. LNG Exporters to Cancel, Delay Cargoes

Time Stamp: January 19, 2024 12:00 AM
Source Node: 3070463

The recent freeze across Texas and Louisiana disrupted scheduled exports of U.S. liquefied natural gas, temporarily tightening some supplies of the heating and power-plant fuel.

The Cameron LNG export plant in Louisiana canceled at least one scheduled shipment, according to people familiar with the matter. Several other planned deliveries from Cameron and Cheniere Energy Inc.’s Corpus Christi facility in Texas were also delayed, they said.

The Freeport LNG terminal in Texas on January 16 briefly brought down and restarted one of its three production units, according to a state regulatory filing. Freeport LNG’s loading schedule was also disrupted this week as a result of the weather, according to people familiar with the matter.

Read more: Russian LNG Producer Begins Arctic Operations Despite U.S. Sanctions

Export disruptions will likely be short-lived, with warmer weather expected during the week of January 22. Milder-than-normal temperatures are forecast across most of the U.S. from January 23 to January 27, according to the National Oceanic and Atmospheric Administration.

The global market impact should also be limited given that gas inventories across Europe and Asia remain high, with the end of winter on the horizon. European gas futures fell to a five-month low January 17.

Frigid weather in the U.S. closed ports and reduced domestic gas production, forcing LNG exporters to rearrange schedules for customers. Pipeline gas flows to liquefaction facilities on January 17 were 45% lower than a week earlier.

Cameron LNG did not respond for comment. A spokesperson declined to comment on plant operations. Spokespeople for Cheniere and Freeport also declined to comment.

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