TMN - Natural gas

Natural Gas Increased as Freeport LNG Terminal Resumes

On Friday, natural gas rose as Freeport LNG resumed operations after it started to receive small amounts of energy.

Natural gas for March delivery went up by 1.69% to $2.88 per million metric British thermal units on January 27.

According to analysts, the tracked flows reached only 22 million cubic feet per day. Also, the last time small amounts flowed to the plant was from January 14 to 19, wherein they used it to maintain a flare system.

The Freeport LNG has been shut since June 2022 after a fire. When it operates at full power, it can pull in around 2.10 billion cubic feet per day of pipeline gas. However, energy analysts mentioned that they do not expect the export plant to operate again until March or later. They announced the statement despite the company telling the regulators that it is ready to re-operate this week.

Analysts anticipate it would take weeks before regulators approve Freeport’s plan to start cooling down the plant’s pipes. The factory has to go back to regulators numerous times to have permission to start other parts of the manufacturer.

Freeport LNG is the US’ second-largest liquified natural gas exporter. In addition, it is the only provider that uses grip-powered electric motors to compress and chill natural gas.

Legislators Reject New Mexico’s Natural Gas Bill

The representative from New Mexico, Jim Townsend, proposed a reclassification of a form of natural gas-driven power into renewable energy. He said this is a means to contribute to meeting the state’s energy needs. The bill would allow the region to include natural gas in its renewable energy portfolio if approved. Also, they can increase this type of energy throughout the state.

Based on his statements, the legislation targets support for natural gas production. Meanwhile, Townsend argued that meeting the state’s power demands is essential to avoid blackouts.

However, House Energy, Environment, and Natural Resources Committee disapproved of this. The voting was 7-4, which meant that there was no action taken. It could be brought up again by another vote.

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