Freeport LNG has declared force majeure on LNG exports from its Gulf Coast headquarters through September, Reuters sources said on Friday. the reference to the “Force Majeure” clause makes it possible not to respect delivery contracts without fear of triggering penal clauses.
Earlier this week, the company said the Gulf Coast facility would be completely offline until September, when it would partially operate by the end of the year. However, he did not specify a cause of force majeure. Now the delivery stop has official status.
The initial estimate of the Freeport LNG outage was three weeks, but it was quickly revised through September following the damage assessment from last week’s fire.
As a result, US LNG exports are expected to remain limited until at least September. With this choice, the US keeps the price of external gas under control, but offloads the problem
The Houston-based Freeport LNG facility accounts for 20% of all LNG processing in the United States, with 59…