Texas, US- The Freeport Liquefied Natural Gas terminal's export demand outlook helped Natural Gas futures rebound. The Freeport LNG terminal was shut down after the explosion and fire on 08th June 2022, halting the trading activities to the overseas market. The Freeport plant process with a production capacity of 15MTPA.

On 12th Feb 2023, the Freeport LNG departed its first Liquefied Natural Gas cargo since the explosion from the Texas facility, which would be heading through the Suez Canal. Freeport loaded the tanker using supplies stored in its storage tanks during last June's fire. On 13th Feb, South Korea's SK-operated Prism Agility also moored at the Freeport Queue area. LNG export operations at Freeport LNG's long-idled plant in Texas could begin again soon, providing the world with a much-needed energy source. Freeport LNG applied for permission to restart commercial operations on 13th Feb; however, the full operations are still months away to fulfill the demand overseas.

With the resumption of trading activities, the March NYMEX contracts were up to 12 cents to USD 2.52/MMBtu. On 15th Feb 2023, the price of Natural Gas is USD 2.54 per MMBtu. The US Federal Energy Regulatory Commission approved Freeport's Liquefaction Train 3 for full, commercial operation after completing restart activities. Two more trains are nearing completion of the 15 million MT/year terminal south of Houston.

As a result of the additional volumes from Freeport, US export demand for Liquefied Natural Gas may boost prices in the coming months. With the higher exports from the US to the European and Asian markets, the producers are anticipated to revise the Natural Gas prices for the overseas market. However, in the short term, the price of Natural Gas will still be impacted by the adequate product inventories among the storage facility and lower demand from the power generation and heating equipment.