U.S. LNG Levels Down, Deals Up

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

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Summary

The amount of natural gas supporting U.S. exports of LNG is subdued. Commitments keep coming though, even for facilities not yet built.

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Interest High for U.S. Gulf Coast LNG

Though the amount of gas feeding U.S. liquefied natural gas (LNG) export facilities is on the decline, there's no shortage of interest in the super-cooled gas given the bevy of recent deals brokered for Gulf Coast installations.

The United States is the world leader in exports of LNG, supported by the vast volumes of natural gas found in domestic shale basins. The federal government this week reported that LNG volumes were the equivalent of 15 billion cubic feet per day (Bcf/d) last year and should average 16.4 Bcf/d in 2026.

On Thursday, IIR Energy in its NATGAS Today report found that feedgas supporting LNG exports was at 17.8 Bcf, down from the recent record above 19 Bcf.

Subscribers to the Breaking Energy News (BEN) service from IIR Energy Intelligence can click here for the notice on recent records in LNG.

The Freeport LNG facility in Texas, which has witnessed a steady string of operational issues since exports began in 2019, saw feedgas drop to almost nothing earlier this week because of unspecified problems, but this had rebounded to 1.8 Bcf by Thursday. Its peak design capacity is 2.37 Bcf/d.

Commitments Keep Coming

U.S. LNG commitments, meanwhile, could be strained by an expected lull in domestic natural gas production. The expected production average of 119.9 Bcf/d for 2026 would be a 1.6% increase from 2025 levels should the early-year forecast prove accurate. That compares to an expected 9.3% year-on-year increase in LNG export volumes.

The commitments keep coming nevertheless. On Thursday, Reuters, citing three sources familiar with the matter, said Saudi Aramco (Dhahran, Saudi Arabia) signed a long-term contract with the developers of the Commonwealth LNG facility, slated for Louisiana, to secure 1 million metric tons per annum (MTPA) of gas in the liquid form, with an option to double that volume. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can learn more by viewing the related project reports.

Aramco is eying investments in the U.S. energy sector. The company signed a memorandum of understanding (MOU) with Commonwealth in November, part of nearly a dozen agreements brokered after a meeting between Saudi Crown Prince Mohammed bin Salman and U.S. President Donald Trump.

Elsewhere, the Glenfarne Group (New York City, New York) said it signed a definitive agreement with German energy company RWE (Essen) to supply 1 MTPA over a 20-year period from the planned Texas LNG facility, meaning Glenfarne now has all of its non-binding agreements secured as long-term offtake arrangements.

Subscribers can learn more by the viewing the project reports on Texas LNG's Train 1 and Train 2.

Glenfarne has not set a firm date for a final investment decision (FID) on the project, and still needs financing. Construction isn't likely until late 2029 for a facility with a nameplate capacity of 4 MTPA.

Don't Ignore Canada

Elsewhere, Canadian efforts to tap Asian economies for LNG deliveries paid off after the nation's energy regulator cleared the Cedar LNG facility for exports from British Columbia.

Natural gas producer Ovintiv Incorporated (Calgary, Alberta) in December signed a 12-year supply agreement with a developer of the planned Cedar LNG export facility, part of a Canadian effort to diversify its trade.

Joint venture partners Pembina Pipeline (Calgary) and the indigenous Haisla Nation announced FID on the Cedar LNG project last summer. The facility will consist of a floating liquefied natural gas (FLNG) facility in Kitimat in British Columbia, with a nameplate capacity of about 3.3 MTPA.

Subscribers can click here to learn more about the project.

By the Numbers

• 9.3% year-on-year increase in LNG exports expected
• 1.6% year-on-year increase in dry natural gas production
• 1 MTPA secured for Saudi Aramco

Key Takeaways

• Feedgas levels off from recent highs
• Aramco signs supply agreement for Commonwealth LNG
• Canada sanctions Cedar LNG facility for exports

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

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, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).