NEW YORK aEUR “An explosion at a Texas liquefied natural gasoline terminal has rattled residents and taken a significant amount of fuel off the market at a moment when global demand for the fuel is high.”
Freeport LNG will be offline at least three weeks after a fire at its export facility. According to the company, no one was hurt and an investigation is underway into the cause.
Melanie Oldham, a Freeport resident, claimed she heard three loud bangs Wednesday morning. She went outside to investigate.
Oldham, a physical therapist and cofounder of Citizens for Clean Air and Clean Water of Freeport and Brazoria counties, said, “It makes it feel like we’re daily living with high risks of explosion, release of gases, public health issues for both us in Freeport and for all those who visit those big beaches on Quintana island.” “We don’t know what could have leaked into the air, or the water.”
According to an incident report filed Thursday with the Texas Commission on Environmental Quality, there was a fire at the LNG terminal’s Liquifaction Delivery System. This caused excess emission of carbon monoxide and nitrous oxides as well as particulate matter and volatile organic compounds.
Gwendolyn Jones (63 years old) was a long-time resident of Freeport when she noticed a white cloud hovering above the facility after the fire. Gwendolyn Jones was worried that Freeport residents were not evacuated or warned of the fire by the local authorities. She suggested that nearby residents be fitted with respirators to reduce the chance of inhaling the dangerous fumes.
Jones stated, “We should hold meetings to discuss issues so that this does not happen again. I am afraid of what might happen next.” “None but God’s grace has kept us alive during these circumstances.”
Freeport LNG exports approximately 2 billion cubic feet per day of liquefied gas, or 15% of all the nation’s LNG exports.
This shutdown occurs at a time when LNG demand is high. Many countries are trying to get off Russian gas. Russian gas is mainly transported through pipelines into Europe. Exports from the United States have been on the rise.
Rystad Energy reported that most of Freeport LNG’s exported goods were headed to Europe. Rystad vice president Emily McClain said that Europe might be able offset the loss of volume by increasing its use of other facilities. She said that about 45% of Europe’s LNG comes from the U.S. and the rest is from Russia, Qatar, and other sources.
Freeport LNG sells gas gas to a variety of buyers, including major oil and natural gas companies and Asian utilities. “Those buyers will not be receiving deliveries from Freeport until that facility is fixed,” Ross Wyeno, lead analyst for S&P Global Commodity Insights, said. Wyeno stated that it is unlikely other LNG terminals in the world will increase production to fill the gap. “Everybody’s pretty much maxed-out if they can.”
According to Wyeno, LNG prices have risen and European consumers will feel it. He said that natural gas prices in the U.S. are declining because the major buyer of gas, the LNG terminal, has stopped buying.
People living near the terminal aren’t comforted by lower domestic natural gas prices. Residents of Freeport, such as Jones and Oldham, have been worried about the possibility for accidents at the terminal.
“Our fears came true, unfortunately,” Oldham said.
