Texas Governor Asks LNG Exporter Freeport to Use Less Gas
(Bloomberg) -- Texas Governor Greg Abbotts office has asked the Freeport liquefied natural gas export terminal to dial back operations in keeping with the states disaster declaration amid a polar blast.
To limit gas and power consumption, Freeport will shut down LNG production units 2 and 3, which will result in unplanned flaring, the company said Tuesday in a regulatory filing. Freeport also said it had to shut unit 1 on Monday because of freezing conditions affecting a pretreatment facility.
Cheniere Energy Inc.s Corpus Christi LNG terminal is also reducing its demand on the grid, according to a spokesman. Both the Texas terminals started up in 2019, with another still under construction and others proposed.
The governors order marks the first time Texas has asked LNG exporters to curb operations amid emergency conditions. Though the industry is still nascent, exports of the heating and power-plant fuel climbed to a record late last year. The current deep freeze is likely to call LNGs role in the energy market into question amid concern that shipments to overseas buyers are contributing to a domestic gas shortage during extreme cold.
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