Feed gas flows to Freeport LNG continued to tick up as a fully loaded vessel left the Texas export facility for the first time in a week, indicating Train 3 operations could be stabilizing.
Nominations of natural gas to the plant began increasing April 27 after hovering near zero for several days, according to Wood Mackenzie pipeline data. Flows appeared to slip again Tuesday, coinciding with a critical notice from Gulf South Pipeline Co. LLC, but were up to near 500,000 MMBtu Wednesday (May 1).
It marks the first time nominations for the Freeport liquefied natural gas export facility have been near 30% of capacity since April 10, a day before a reported issue with Train 3’s ventilation flow meter that caused a system trip.
Freeport LNG Development LP reported its second trip of Train 3 in two weeks on April 23, leading to a drop in feed gas flow and power draw for around six days. Train 3 is currently the only train at the facility not undergoing planned maintenance.
The issue was reported to Texas environmental regulators shortly after a ship controlled by Pavilion Energy PTE Ltd. left Freeport’s Berth 1 on April 23, according to Kpler vessel data.
A fully loaded ship controlled by Osaka Gas Co. Ltd. now appears to be heading toward Japan after being anchored at Freeport’s Berth 1 for at least two days, according to Kpler.
The market has been hanging on the back and forth of Freeport’s feed gas flows as traders look for any demand upside to lift U.S. natural gas prices.
Mizuho Securities USA LLC’s Robert Yawger, energy futures director, wrote a Wednesday morning drop below $2/MMBtu could indicate “optimism has been stepped on a bit in the past 24 hours, though it does look like progress is being made.”
At full operational capacity, Freeport is able to produce about 2 Bcf/d for export. Feed gas flows to Freeport have been reduced to about one-quarter of capacity since early March after the company reported extended maintenance and repairs for all three trains until early May.
