U.S. Gas Production Curbed by Seasonal Maintenance

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Seasonal maintenance on the U.S. natural gas pipeline sector led to declines in production, just as the domestic liquefied natural gas (LNG) sector continues to advance, data show.

IIR Energy found that natural gas production from the Lower 48 states averaged 106 billion cubic feet per day (Bcf/d) last week, much lower than federal estimates pointing to an annual average of 114.3 Bcf/d for 2025.

"Ongoing pipeline maintenance continues to weigh on production," Maria Sanchez, a senior natural gas analyst at IIR Energy, wrote Friday.

The United States, meanwhile, is a net importer of natural gas from Canada, though deliveries were down modestly last week. Consumption increased, up nearly 2 Bcf/d on the week, amid an uptick in exports to Mexico.

Mexico's economy grew more than expected during the second quarter, while President Claudia Sheinbaum has managed to avoid U.S. President Donald Trump's scorn over bilateral trade.

Elsewhere, U.S. exports of LNG held steady last week, but remained about 6% less than federal forecasts to average 15 Bcf/d last week due to a slowdown in deliveries to the Sabine Pass terminal, operated by Cheniere Energy (Houston, Texas).

The U.S. LNG sector is getting crowded as the federal government seemingly rubber-stamps new and formerly shelved projects alike. Last week, Glenfarne Alaska, the developer of the long-planned Alaska LNG facility, said it secured steel supplies and an offtake agreement with South Korean steel producer POSCO (Seoul).

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In addition, upstream services firm Baker Hughes (Houston) secured a contract from engineering firm Bechtel (Reston, Virginia) to supply the equipment necessary to build a fourth liquefaction unit, or train, at the Rio Grande LNG facility in Texas.

Train 4 has an expected LNG production capacity of nearly 6 million tonnes per annum (MTPA), bringing the total expected production capacity under construction at Rio Grande to about 24 MTPA.

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A rush of new LNG projects could help the United States ensure it remains the world leader in exports. Already passing Australia and Qatar to take the helm under former President Joe Biden, Trump wants more, ostensibly to support global energy security.

Total natural gas production from the Lower 48 states is on pace to decline marginally to 114 Bcf/d on average next year, however, while LNG exports are on pace for a 6% increase.

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) 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 over 200,000 current and future projects worth $17.8 Trillion (USD).