Freeport LNG, the second-largest exporter of U.S. liquefied natural gas, is set to resume full production on Sunday, drawing over 2 billion cubic feet (bcf) of natural gas, as reported by LSEG. Located near Freeport, Texas, the plant had been shut down since July 7 in preparation for Hurricane Beryl. It has been gradually increasing its feedgas demand as it conducts repairs. The restart will bring the plant close to its full capacity of 2.2 bcf per day, marking its first significant output since the shutdown. Freeport LNG’s operations are closely watched due to their impact on global gas prices.

The return of Freeport LNG to full production is likely to have several impacts on the market:

Global Gas Prices: As one of the largest LNG exporters, Freeport LNG's output significantly influences global gas prices. With the plant back to near full capacity, there could be a decrease in LNG prices due to the increase in supply, particularly if global demand remains stable.

U.S. Gas Prices: Increased LNG exports can affect domestic natural gas prices in the U.S. by shifting a portion of supply from the domestic market to international buyers. This might lead to a rise in U.S. natural gas prices, especially if domestic production does not match the increase in LNG export volumes.

Supply Chain Stability: The plant's restart helps stabilize the LNG supply chain, which had been disrupted due to the hurricane. This stabilization can alleviate concerns about potential shortages and supply volatility in international markets.