U.S. Natural Gas Prices Drop After Explosion At Freeport LNG Terminal By Charles Kennedy - Jun 08, 2022, 1:30 PM CDT An explosion at a liquefied natural gas (LNG) export terminal in Texas has sent natural gas prices downward as emergency crews respond and details continue to flow in. At 11:40 a.m. CT, an explosion rocked the Freeport oil and gas export terminal, with emergency response crews on the scene just over an hour later, according to media reports and Twitter accounts. No injuries have been reported as of the time of writing, and the extent of the damage remains unclear. “Freeport LNG has experienced some sort of explosion. Currently, we are NOT under any evacuation. Your Surfside Beach Police Department Marine Division is actively assisting Port Freeport and the US Coast Guard on the waterways,” the local police station said in a statement shortly after the explosion. Authorities said an investigation was underway. A local news channel released raw footage of the explosion. The expert terminal, located on Quintana Island off the coast of Upper Texas, has three production units, or trains, to give the facility an LNG liquefaction capacity of some 15 million metric tonnes per year. A fourth train has also been approved and is under development. Overall, the Freeport terminal currently produces around 2 billion cubic feet per day of LNG. Henry Hub natural gas was trading down more than 6% at the time of writing, in the aftermath of news of the explosion. At 2:23 p.m. EST, Henry Hub natural gas prices were at $8.698, down 6.40%. Earlier on Wednesday, natural gas prices hit a 14-year record. On Tuesday, natural gas futures rallied over 10% to close at $9.29. That brought natural gas prices to a 150% increase year-over-year. U.S. exports have experienced a major rise in recent months amid a global energy crisis centered on Russia’s invasion of Ukraine and Western sanctions. ______________________________________________________ This world is getting strange. Or rather professional writers are having mental. NG export terminal exploded ---> supply down ---> NG price goes down. _________________________________
down it goes by > 25% in just an hour or 2. something very major happening. Is Russia suddenly pumping tons and tons of NG into Europe at a discounted price?
NG day range the record day range was 2.34 ON 24 FEB 2003. as of now, the day range is 1.85 on 14 JUN 2022. this is the 2nd highest in the history of NG.
Natural gas implodes after Freeport LNG warns that full restart won't come until late-2022 The plant was hit by an explosion last week Adam Button Tuesday, 14/06/2022 | 21:38 GMT+8 0 The global liquefied natural gas market is set to tighten considerably after the Freeport LNG fire last week. Hopes for a relatively quick restart were dashed by the company today, which said it hopes for a 'partial' restart in 90 days and that full operations won't resume until 'late 2022'. The plant exports 2 billion cubic feet per day of LNG out of about 15 Bcf total in the US. Instead of being exported, that gas will now remain at home in the US. It will help to loosen the domestic market but will tighten global LNG, meaning higher prices in Europe and Asia. ___________________________________________ OK. now it makes sense. Because of an explosion at Freeport LNG, NG price implodes massively.
LNG is not a global market. What Russia is selling has nothing to do with Henry Hub. There is however, a current arbitrage as a result. You’ll need an expensive, special boat to ship LNG to Europe. Their price is over 30.
The catalyst for the drop, imo, is the beginning of a consolidation, as this is a natural spot for all of energy to take a break(all energy). Combine that with bear markets eventually coming for everyone, and the ridiculously strong dollar. for now, it’s likely to be down/chop city. A break above 9, and it’s playable again. I don’t expect that for some time at this point. The move is over- for now. it’s not called the widow-maker for nothing.