U.S. LNG exporter Freeport LNG is expected to reduce output in the coming days due to unplanned maintenance at the Texas plant, twomarket sources said.
The work at the third largest LNG export facility in the U.S. could last through May and have prompted the company to cancel three previously scheduled cargoes, the sources added. Those shipments were due to go to portfolio players that typically buy from various sources and act as middlemen to optimize arbitrage opportunities, two sources familiar with the matter told Reuters.
The unplanned outage comes at a time when global LNG prices have been elevated, with the U.S.-Israeli war with Iran taking about 20% of supply offline.
Freeport LNG declined to comment.
The Texas plant has struggled to operate consistently for extended periods. On Friday, Freeport was expected to process close to 2 billion cubic feet per day of natural gas, near its full capacity, according to data from financial firm LSEG.
The U.S. is the largest exporter of LNG in the world and has played a key role in supplying Asia during the ongoing crisis in the Middle East.
(Reporting by Curtis Williams in Houston; Editing by Chris Reese, Nathan Crooks and Chizu Nomiyama )