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Natural Gas Surges With US LNG Export Terminal Set for Fast Restart

  • News surprised traders who expected more gradual return
  • Freeport restart in October will add to strain on inventories
Updated on

US natural gas prices surged after a key export terminal in Texas reached an agreement with regulators to restart as soon as October after an explosion.

Freeport LNG, which was shut down in June after a blast, has entered into an agreement with the Pipeline and Hazardous Materials Safety Administration to resume operations in early October at almost full capacity, the operator said in a emailed statement Wednesday. That would boost demand for natural gas by nearly 2 billion cubic feet a day, equivalent to roughly 2% of domestic output.