Freeport LNG Gets Ready to Restart Exports, Tanker Docked Nearby
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). Freeport, when it’s online and running, liquefies and exports roughly 2 billion cubic feet per day (Bcf/d) of natural gas–some of it from the Marcellus/Utica. In August, Freeport LNG Development, the operator, said the plant is expected to be back online in November (see Freeport LNG Restart Timeline Slips from October to November). It appears we are now very close to the restart of the facility.
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Once upon a time, a few years ago, Europe turned its nose up to American “fracked” gas as filthy and vile, preferring to buy its gas from Vladimir Putin instead. American companies fell all over themselves to win the love of arrogant Europeans for our natural gas–primarily by “proving” our gas (turned into LNG) is “responsible.” Responsible gas certification programs appeared overnight and have been adopted by most (if not all) of the major drillers in the Marcellus/Utica (see 
As happens at the beginning of most winters (at least in recent years), we are beginning to see articles with warnings from the electric grid operator in New England, ISO New England Inc., that if the region experiences “an extremely cold winter,” it’s a pretty safe bet there will be electric blackouts. The region relies almost exclusively on natural gas to generate electricity. The reason there will be blackouts is due to Maura Healey. Healey is the Attorney General of Massachusetts. During her tenure as AG, Healey has blocked two different natgas pipeline projects–because she irrationally hates (yet still uses) fossil energy. Healey is now running for governor of MA and is likely to win. You know what? Massachusetts residents will get the blackouts they deserve if they elect Healey.
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 
Two days ago, MDN told you that the Apostle of LNG, Toby Rice (CEO of EQT), had convinced his buddies at Williams and TC Energy (two pipeline companies) to join him in his latest effort to push for more U.S. LNG exports (see 
President Joe Biden has, on many occasions, stated that the U.S. would step up LNG exports to help our European friends (see 
EQT CEO Toby Rice has been and is on a mission to spread the gospel of LNG (see 
On Saturday, Oct. 1, Berkshire Hathaway Energy shut down the Cove Point, Maryland, LNG export facility to perform regular annual maintenance. Berkshire Hathaway (Warren Buffett), while a minority owner of Cove Point, is the operator of the facility. Natural gas flowing to the plant for liquefaction and export averaged 0.76 billion cubic feet per day (Bcf/d) in September (three-fourths of a Bcf). Those flows dropped to near zero on Oct. 1. Cove Point is typically offline for three weeks each year for maintenance. Now we hold our collective breath until it comes back online. Three-fourths of a Bcf each and every day is a lot of gas. Where will it go?
According to a column by a Reuters analyst, U.S. natural gas production will need to increase significantly to continue growing LNG exports while ensuring natgas remains affordable for domestic electric power producers, households, and industrial users. This is the first article (we’ve seen) that puts numbers to the claim that LNG exports are beginning to drive the price of domestic natgas to higher levels.
Yesterday was the first day of the two-day Shale Insight conference being held in Erie, PA. By all accounts, it was a great day. Among the all-stars presenting were Toby Rice, CEO of EQT Corporation, Nick Dell’Osso, CEO of Chesapeake Energy, Greg Floerke, COO of MPLX, and Neil Chatterjee, former Federal Energy Regulatory Commission Chairman. The important role of LNG, pipelines, regulations, and more were discussed. One of the themes of the day: Natural gas is not a bridge fuel, but the destination.
The price of natural gas here in the U.S. has roughly quadrupled in price over the past two years. If you are a landowner or rights owner, you’ve certainly noticed a nice increase in royalty revenue. As we have reported about publicly traded drillers in the Marcellus/Utica, profits and free cash flow over the past couple of quarters have gone through the roof–because of the high price of natgas. The question is, why have prices for natural gas gone so high? And relatedly, will they stay high?