Methane-Based Gas Plant Explosion Sends Shockwaves Through Market

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

The Freeport LNG export facility will be fully out of commission until September and will not be fully up and running until late this year, the company said yesterday following an explosion at its Quintana Island liquefaction facility last week. The company had initially said the plant would be shut down for three weeks, and the announcement sent shockwaves through an already-volatile methane-based gas market.

Gas futures fell dramatically in response to the news, reflecting how high gas prices in the U.S., a major driver of inflation while firms reap record profits, have been driven by the increased export of LNG. (European gas prices spiked in response to the news.) It also significantly affects the Biden administration’s efforts to export more liquified methane-based gas to Europe. The facility accounted for about one-fifth of U.S. exports.

Sources: ReutersCNBCBloomberg $, The HillOilPricePolitico Pro $, Wall Street Journal $; European implications: New York Times $, E&E NewsFT $

Related: Methane At Sea: Finding The Invisible Climate Killer, So-Called “Green” (LNG) Ships

Featured image from Massive Methane Leaks By The Oil & Gas Industry Detected From Space

Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Our Latest EVObsession Video

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
Thank you!

CleanTechnica uses affiliate links. See our policy here.

Nexus Media

A syndicated newswire covering climate, energy, policy, art and culture.

Nexus Media has 305 posts and counting. See all posts by Nexus Media