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Natural gas rallies as Freeport LNG plans October restart (NYSEARCA:UNG)

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U.S. natural gas prices rose on Wednesday after the key Freeport LNG export terminal received regulatory approval to reopen earlier in October and resumed operations after being shut down on June 8 due to an explosion and fire.

The news surprised traders who were expecting a more gradual restart after the Pipeline Hazardous Materials Safety Administration requested a series of corrective actions from Freeport.

Nymex Natural Gas for the front month (NG1:COM) settled for delivery in September +7.3% at $8.266/MMBtu

ETF’s: (NYSEARCA:UNG), (UGAZF), (DGAZ), (BOIL), (FCG), (KOLD), (UNL)

The privately held company Freeport said it has reached a settlement agreement with the PHMSA to ensure it can resume initial and eventual full operations of its liquefaction plant “safely and confidently,” which the company says it could allow it to do , with exporting nearly 2 billion days through early October.

The US Energy Information Administration said in a report in late June that the Freeport closure reduced total US LNG export capacity by 2 billion cf/day, or ~17% of total US LNG export capacity.

Meanwhile, US crude oil futures fell 4% to $90.66/bbl after US government data showed unexpected increases in crude oil and gasoline inventories.

https://seekingalpha.com/news/3866765-natural-gas-rallies-as-freeport-lng-plans-october-restart-after-regulatory-ok?utm_source=feed_news_all&utm_medium=referral Natural gas rallies as Freeport LNG plans October restart (NYSEARCA:UNG)

Russell Falcon

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