US Freeport LNG terminal set to resume full operations early August

Freeport LNG will likely resume full operations at three trains at its terminal in Texas in early August, after the facilities were shut July 7 ahead of the arrival of Hurricane Beryl, a source with direct knowledge of the matter told S&P Global Commodity Insights July 25.

The terminal is expected to run Train 3 at full rate by the end of July, with Train 1 and Train 2 restarting gradually, said the source, who spoke on the condition of anonymity as the matter is private.

"Three trains [at Freeport LNG] are expected to reach full operations in early August," the source said.

The Freeport terminal will resume operations in a phased manner over the next two to three weeks, shipbrokers also said.

"We are safely progressing the restart of our liquefaction trains," Freeport spokesperson Heather Browne said July 25.

The development comes as the terminal has been gradually resuming shipments in recent days.

In Asia, JERA and Osaka Gas lift 2.32 million mt/year each and South Korea's SK E&S lifts 2.2 million mt/year of Freeport LNG.

The SK E&S spot chartered Cool Runner is lifting an LNG cargo at the terminal July 23-27 for South Korea delivery at a rate of around $70,000/day for a round trip, ship brokers said.

"We cannot make remarks on detailed movements of sailing LNG carriers," an SK E&S spokesperson said.

The Cool Runner, which was moored near the Freeport terminal in the US Gulf Coast at 0600 GMT, according to Platts cFlow ship and commodity tracking software from Commodity Insights.

The JERA-chartered Gaslog Wales left the Freeport LNG terminal laden with a cargo July 22 bound for Kawasaki, Tokyo Bay, where it is now estimated to arrive Sept. 9, following the departure of the EnBW-chartered Axios II laden with a cargo July 21, according to S&P Global Commodities at Sea.

The Gaslog Wales, which had earlier docked at the Freeport terminal and departed without fully loading, was the second ship to berth after LNG shipments resumed following the July 7 shutdown.

The resumption of shipments from Freeport LNG follows the operator saying July 15 that it expected to resume production in the first of three liquefaction units later that week and the remaining two trains "shortly thereafter." Market sources said the terminal also had volumes in storage.