Shut Down, Part 2 - Global Market Impacts of the Freeport LNG Outage

RBN Energy Blogcast

Freeport LNG is expected to be offline for an extended period following last week’s explosion and fire at the export terminal, leaving the global gas market even more undersupplied than it already was. The outage cuts U.S. export capacity by about 2 Bcf/d at a time when Europe is still taking in huge volumes of LNG to offset declines in Russian supplies and bolster storage ahead of winter. This is all happening as another large exporting nation, Australia, is facing a critical winter energy crisis of its own and South American demand is headed toward its seasonal high, straining an already tight market. Today’s RBN blog continues our series about the ongoing Freeport outage, this time looking at the impact to the global gas and LNG markets.