US natgas exports to LNG plants are on track to reach a 9-month high

According to data provided by financial firm LSEG, the amount of gas going to seven large U.S. liquefied gas export plants is on track to reach a new nine-month record on Thursday. This was due to feedgas reaching multi-week records at a few plants.

Energy market is concerned about feedgas flow to U.S. Liquefied Natural Gas plants, because in recent years exports were the largest source of growth for the gas industry.

In 2023, the U.S. will be the largest LNG exporter in the world, surpassing Australia and Qatar. This is due to higher prices worldwide, which are a result of supply disruptions, and sanctions related to Russia's invasion in Ukraine in February 2022.

The U.S. LNG Feedgas is on track to increase from 14.0 billion cubic foot per day (bcfd), on Wednesday, to a high of 14,4 bcfd, on Thursday.

A billion cubic feet of gas can power five million U.S. households for one day.

The increase in gas flow was due to the rising feedgas levels at several plants.

The flow rate to Venture Global LNG’s Calcasieu Pass, a 1.6 bcfd facility in Louisiana, was on track to reach a four-month-high of 1.5 bcfd Thursday.

On Thursday, the flow rate to Cameron LNG’s Cameron plant in Louisiana (2.0 bcfd) was on track to reach a new four-week-high of 2.3 bcfd.

The flow rate to Cheniere Energy’s Sabine Pass plant in Louisiana, which produces 4.5 bcfd of gas per day, was on track to reach a new three-week record Thursday. Sabine is America's largest LNG export facility.

LNG export plants can draw in more gas than can be converted into LNG, because they use some fuel to run the liquefaction equipment and other equipment.

The gas market will also be waiting for the two newly constructed facilities to come into service as test units before the end the year. These are the first 1.8 bcfd phase at Venture Global's Plaquemines plant in Louisiana, and the 1.5 bcfd stage 3 expansion of Cheniere Corpus Christi's plant in Texas.

LSEG data shows that Plaquemines has been testing its liquefaction trains, which convert gas into LNG, by pulling small amounts of pipeline gases every day since the middle of September. Analysts expect that the plant will start pulling in more pipeline gas in the coming days or even weeks to test its liquefaction train, which turns gas into LNG.

(source: Reuters)