U.S. LNG Explosion Adds Pressure to European Energy Supply
Freeport LNG out for at least 3 weeks
Freeport LNG terminal
The Freeport LNG terminal in Texas suffered an explosion on June 8 and is expected to be out for at least 3 weeks. This adds pressure to European gas supply, already suffering due to Russian sanctions and counter-sanctions.
With a capacity of around two billion cubic feet per day and running at close to capacity for many months, this is gas supply Europe urgently needs. More than half its output ends up in Europe or about 10% of total gas important volumes into Europe.
Alternative suppliers of LNG include Qatar, Nigeria, Algeria, Southern America and the Caribbean. And U.S. LNG export facilities at Sabine Pass, Corpus Christi, and Cameron LNG could be tempted to divert supply to Europe if prices are high.
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