Freeport LNG Creates Confusion by Retracting Force Majeure

The second-largest LNG export terminal in the U.S., Freeport LNG, located near Galveston, Texas, experienced an explosion and fire in early June (see Explosion Rocks Freeport LNG Export Plant – Offline for 3 Weeks). Thankfully nobody was injured, and it did not take long to extinguish the fire. The incident took the plant offline for “at least three weeks,” which later turned into months (at least until October). Freeport was quick to declare the incident a force majeure or unforeseeable act of God, which takes the facility and the buyers of its LNG off the hook for legally-binding contracts to deliver LNG. But what's this? Freeport has, according to Reuters, retracted or rescinded its declaration of force majeure.

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