Sources say that Freeport LNG in Texas is expected to reduce production for maintenance in the coming days.

Two sources say that Freeport LNG, a U.S. LNG supplier, is likely to reduce its output due to maintenance unplanned at the Texas facility.

Sources said that the work at the third largest LNG facility in the U.S. may last until May, and this has prompted the company's cancellation of three cargoes previously scheduled. Two sources said that the shipments were to be sent to portfolio players who typically act as intermediaries and 'buy from different sources to maximize arbitrage opportunities.

The unplanned outage occurs at a time of high global LNG prices, as the U.S.-Israeli War with Iran has taken about 20% supply offline.

Freeport LNG has declined to comment.

The Texas plant has struggled for long periods to run consistently. According to LSEG, Freeport was expected to process nearly 2 billion cubic feet of natural 'gas per day on Friday.

The U.S. has been the world's largest LNG exporter and played a major role in supplying Asia with LNG during the Middle East crisis. Reporting by Curtis Williams, Houston; Editing done by Chris Reese and Nathan Crooks.

(source: Reuters)