A natural gas pipeline operated by Energy Transfer exploded Thursday in a rural area southwest of Houston, local officials said, adding that the fire was extinguished about two hours after the pipeline exploded.
The explosion occurred in the morning local time on Thursday. No injuries were reported and there was no damage to any structures, Fort Bend County Sheriff Chad Norvell said. The fire was extinguished at 12:15 a.m. ET Thursday, Fort Bend County later confirmed.
Energy Transfer, the operator of the natural gas pipeline, told Reuters in an emailed statement that “our control center immediately shut down the line and the area was secured.”
According to Victoria Kahn, spokeswoman for the Texas Commission on Environmental Quality, the company reported a natural gas leak from the pipeline.
The Railroad Commission of Texas, which regulates oil and gas operations and pipelines in the state, said it would investigate the explosion. Spokesman Andrew Keys told Reuters the commission had already begun its investigation. Pipeline operator Energy Transfer is also investigating the cause of the explosion.
Meanwhile, benchmark U.S. natural gas prices at Henry Hub jumped above $6 per million British thermal units (MMBtu) on Thursday after the U.S. Energy Information Administration reported less-than-expected gas storage inflows for the week to 1 July. U.S. natural gas prices have declined from recent highs since the Freeport LNG export facility shut down operations in early June due to a fire. The force majeure at Freeport LNG is expected to last until September and the plant is expected to restore some capacity by the end of the year. As a result of lower US LNG exports, benchmark natural gas prices in America have fallen as more gas will now be available for domestic consumption.
By Tsvetana Paraskova for Oilprice.com
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