U.S. LNG Feed Gas Down, but Potential Up

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Maintenance is keeping the amount of feed gas supporting U.S. LNG exports subdued. But more gas will be needed to keep up with expansion projects along the Gulf Coast.

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Feed Gas Below All-Time Highs

The amount of feed gas running to the operational U.S. export terminals for liquefied natural gas (LNG) remains subdued, though expansion orders will ensure the sector remains the best in the world.

Industrial Info Resources in its NATGAS Today report for Tuesday showed the amount of natural gas running to the terminals for exports as LNG remains well below late 2025 highs of just over 19 billion cubic feet.

Maintenance, largely at the Freeport LNG terminal, continues to drag on feed stock. Levels dropped 0.15 billion cubic feet overnight to reach 17.09 billion cubic feet on Tuesday.

Meanwhile, production was down as well, with IIR's sample showing declines across Louisiana and Texas. Production centers were spared last week from Tropical Storm Bertha, and while there's no cyclonic activity in the Atlantic, heat advisories up and down the Gulf Coast could strain the grid. The heat index in Jackson, Mississippi, for Tuesday was expected to reach 115 degrees Fahrenheit.

The federal government expects LNG exports to run at the equivalent of 17.4 billion cubic feet per day (Bcf/d) this year on average, a 15% increase from year-ago levels. Exports could increase another 8.1% by next year to average 18.6 Bcf/d.

The largest expansion would be from trains 19-36 at the Plaquemines terminal, operated by Venture Global LNG. Expansions would add another 1.96 Bcf/d to its feed gas capacity.

Natural gas production, however, is not expected to keep up, increasing by only around 2.6% to reach 115.3 Bcf/d by next year. All that comes as the U.S. LNG sector is primed for expansion, with four of the nine operational terminals slated for growth.

Baker Hughes Tapped for CP2

On Monday, upstream services firm Baker Hughes reported that it secured an order from Venture Global to provide support for the second phase of the Calcasieu Pass terminal in Louisiana.

"Our continued collaboration reflects the strength of our partnership and our shared commitment to scaling modular LNG solutions that accelerate U.S. supply and support global energy security," said Baker Hughes Chairman and Chief Executive Officer Lorenzo Simonelli.

For undisclosed terms, Baker Hughes will provide 12 liquefaction modules for the slated expansion. With deep-water access off the coast of Louisiana, the first phase of the facility has an export capacity of around 11 million metric tons per annum (MTPA).

The second phase would include up to 29 MTPA from an adjacent site, according to operator Venture Global. Based on data from Industrial Info, the second phase could be up and running by next year.

Net income attributable to Baker Hughes improved 12% from the first quarter to reach $640 million during the three-month period ending June 30. Simonelli said on earnings that levels showcase a disciplined approach at a time when war in the Middle East is upending the global energy sector.

"Looking ahead, favorable underlying fundamentals support our confidence in achieving the midpoint of our full-year guidance as we continue to manage through the Middle East uncertainty," he said.

By the Numbers

• 29 MTPA from second phase of Calcasieu Pass
• 15% increase in LNG exports expected, relative to 2025 levels

Key Takeaways

• Feed gas remains limited for U.S. LNG
• The sector is nevertheless primed for growth

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About Industrial Info Resources
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, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).