👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

U.S. energy regulators questioned on oversight of Freeport, Texas, LNG plant

Published 14/02/2023, 08:39 am
© Reuters. Residents line up to question U.S. energy and safety regulators during a meeting to review plans to restart the Freeport LNG gas-export facility idled by fire last year in Freeport, Texas, U.S., February 11, 2023. REUTERS/Arathy Somasekhar
NG
-

By Arathy Somasekhar

FREEPORT, Texas (Reuters) -Texas residents grilled U.S. energy regulators on Saturday over their supervision of liquefied natural gas processing plants at a meeting to discuss conditions at the fire-idled Freeport LNG plant.

The second-largest U.S. liquefied natural gas (LNG) export facility was knocked offline by a fiery blast last June and operations halted while regulators review operations and staffing.

When fully running, Freeport LNG processes about 2 billion cubic feet per day of natural gas and exports up to 15 million tonnes of LNG per year. Its progress toward reopening is closely watched because of the impact on U.S. natural gas prices.

Bryan Lethcoe, a regional director of regulator Pipeline Hazardous Materials Safety Administration (PHMSA), said it would take "a number of months" for Freeport LNG to return to full operation. PHMSA officials declined to provide an exact estimate.

Residents questioned whether regulators have provided adequate oversight over the plant's repairs, its past emissions or the monitoring of local residents' health.

"We're concerned about them getting close to reopening. I'm hoping FERC and PHMSA kind of slow down the process of allowing them to reopen," said Melanie Oldham, one of about 100 residents who attended the meeting.

A Freeport LNG spokesperson declined to comment.

The blast resulted from inadequate operating and testing procedures, operator fatigue and other shortcomings, a safety audit found. About 10,000 pounds of methane were released, said a PHMSA representative. Methane is the main component of natural gas and a potent greenhouse gas.

© Reuters. Residents line up to question U.S. energy and safety regulators during a meeting to review plans to restart the Freeport LNG gas-export facility idled by fire last year in Freeport, Texas, U.S., February 11, 2023. REUTERS/Arathy Somasekhar

The LNG producer has completed all repairs and is working to restart the facility safely once regulators approve its plans, a spokesperson previously has said.

Linda Daugherty, PHMSA's deputy associate administrator, said its reviews continue. Officials declined to comment on whether they uncovered any safety violations.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.