A roundup of news and commentary from NGI’s LNG Insight 

  • Freeport LNG Development LP said Wednesday it has reached a consent agreement with federal regulators, keeping it on track to return its export facility on the Upper Texas Coast to full service by the end of the year.
  • The agreement includes corrective measures for the restart, many of which are underway after regulators issued recommendations weeks after an explosion and fire knocked the facility offline in June. 
  • Freeport repeated that it expects to resume partial service by early October and return three liquefaction trains, two storage tanks and one loading dock to operations. That would allow it to produce 2 Bcf/d of LNG, or enough to meet its existing long-term sales contracts. 
  • At full capacity, which the company expects to resume by the end of the year, the facility can produce more than 2 Bcf/d. Henry Hub futures shot up by nearly 80 cents in intraday trading on the news. The prompt contract closed 56 cents higher at 8.266/MMBtu as a restart would boost domestic natural gas demand. 
  • Chesapeake Energy Corp. has signed a deal to supply Golden Pass LNG with 300 MMcf/d of independently-certified natural gas for three years. The gas supply agreement is expected to begin in 2024 when the terminal comes online at a New York Mercantile Exchange-based price less a fixed differential.