Feedgas to U.S. LNG Terminals Hits Record High

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The amount of feedgas running to the eight functioning export terminals for liquefied natural gas (LNG) in the U.S. hit a new high last week, supported by volumes flowing to the newly launched Plaquemines facility in Louisiana, data show.

IIR Energy reported that feedgas into all functioning U.S. export terminals reached 15.49 billion cubic feet on January 11, beating previous highs set in 2023 and 2024 by at least a half-million cubic feet. By Thursday, it had hit 16 billion cubic feet.

Much of the gain came from the Plaquemines facility for LNG exports, which is running at 70% of its peak design capacity. Data show Plaquemines was supported in large part by volumes coming from the Tennessee Gas Pipeline, a massive network that stretches from New England to the U.S. Gulf Coast. Led by a division of Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas), data show the pipeline was delivering about 700 million cubic feet of gas per day to Plaquemines.

The first-ever cargo from Plaquemines was loaded on December 26 onto the Venture Global Bayou, one of nine new vessels in the fleet of operator Venture Global that are designed to transport LNG.

This cargo was shipped to energy company EnBW Energie Baden-Württemberg AG (EnBW) (Karlsruhe, Germany). The shipment came roughly two weeks after data from IIR Energy confirmed the facility began drawing in more than 100 million cubic feet of natural gas per day for liquefaction operations.

During the seven-day period ending January 8, federal data show only one of the 27 vessels laden with U.S.-based LNG left from Plaquemines. The largest LNG export facility by volume, Sabine Pass, saw nine ships depart during that week.

On Wednesday, IIR Energy data showed Sabine Pass was operating at its peak processing capacity of about 5 billion cubic feet per day (Bcf/d). Cheniere Energy Incorporated's (NYSE:LNG) (Houston) export facility in Corpus Christi, Texas, is the second-largest after Sabine Pass, and more feedgas volumes are expected from the commissioning of its third stage, which should add another 1.59 Bcf/d of capacity.

Cheniere delivered the first batch of LNG from the third stage of its export facility in Corpus Christi in late December. The third stage consists of seven mid-scale trains, or liquefaction plants.

The U.S. is the largest natural gas producer and exporter of LNG in the world. Outgoing President Joe Biden enacted a pause, later suspended by the courts, on new LNG export facilities while the administration looked at the methane emitted up and down the supply chain.

President-elect Donald Trump, who takes the oath of office on Monday, is decidedly pro-fossil fuels, though forward momentum is already behind the U.S. LNG sector. In its Short-Term Energy Outlook report for January, the Energy Information Administration (EIA) forecast total LNG exports would average 14 Bcf/d this year, a 16% increase over last year.

That could nevertheless result in higher market prices in the U.S.

"We expect wholesale natural gas prices to increase because growth in demand--led by liquefied natural gas exports--outpaces production growth and keeps inventories during the next two years at or below their previous five-year averages during most of the forecast period," EIA's January report read.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).