An explosion at a Texas liquefied natural gas plant will cut exports for weeks, briefly lowering prices for the fuel in the US while boosting them in Europe.
The Freeport LNG export facility will remain closed for at least three weeks after a fire, a company spokesperson said.
It issued a force majeure to buyers with shipments scheduled till at least June 30, according to traders with knowledge of the matter. Almost one-fifth of all overseas shipments of gas from the US went via the terminal last month.
The US sent nearly three-quarters of its LNG to Europe in the first four months of the year, with the region now getting almost half of its LNG supplies from across the Atlantic.
Some European countries have been attempting to wean themselves off Russian gas due to the invasion of Ukraine, but remain dependent on it in the short term.
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