Oil, Gas Midstream Expansions Possible Amid U.S. LNG Boom

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

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Summary

Midstream networks could support expansions in the U.S. LNG sector. But the sector is still facing a future where gas production isn't keeping pace.

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More Feed Stock Needed for U.S. LNG

Industrial Info Resources on Tuesday noted that domestic liquefied natural gas (LNG) producers may need more feedstock as the sector expands, something Energy Transfer LP said it was addressing.

In its NATGAS Today report for Tuesday, Industrial Info Resources reported that planned expansions to the eight operational terminals for LNG, along with new additions, would require another 5.27 billion cubic feet per day (Bcf/d) in feedstock.

Feedstock running to terminals on Tuesday was about 17.3 billion cubic feet, well short of the late-2025 peaks of about 19 billion cubic feet per day (Bcf/d). The largest demand sink for feedstock would be from the Port Arthur LNG facility, which could be online as early as next year.

Sempra Infrastructure, a subsidiary of Sempra Energy, is soon expected to begin construction on a 26.9-mile segment of the Texas Connector Pipeline, which would provide up to 2.5 Bcf/d of natural gas to Port Arthur LNG.

Industrial Info Resources offers more information on the Texas Connector Pipeline in its Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database, where readers can find details--including construction schedules, investment values and necessary equipment--in a detailed project report.

Readers also can consult a detailed list of reports for projects related to Port Arthur LNG.

The sector is under pressure from maintenance, however. According to Tuesday's NATGAS Today report, deliveries to the Freeport LNG facility in Texas dropped to about half of its peak capacity of 2.37 Bcf/d because of ongoing maintenance.

Readers can learn more about Freeport LNG from a detailed plant profile.

But the U.S. remains the world leader in exports of LNG, supported by its vast inland shale reserves. The U.S. federal government expects the amount of feed gas supporting LNG exports to increase 8.1% to reach 18.6 Bcf/d on average for next year, compared to a 3.6% increase in raw natural gas production.

On Tuesday, however, midstream-focused Energy Transfer said it had more activity on its books that would support the booming LNG sector. The company said it would place its Hugh Brinson Pipeline in service in Texas by September 1, adding 1.5 Bcf/d in takeaway capacity. Readers can learn more from a detailed project report.

"Energy Transfer expects to announce additional natural gas pipeline projects later this year to fuel growing power demand," the company added.

Industrial Info is tracking nearly 100 midstream projects in service in North America that are tied to Energy Transfer. Two more are in the planning stages, including a 22-mile line that would support LNG feed stock in Lake Charles, Louisiana. Readers can consult detailed lists for projects in service and in the planning stages.

By the Numbers

• 18.6 Bcf/d on average for next year in U.S. LNG exports
• $26 billion needed for war-related damage to Qatar's LNG infrastructure

Globally, LNG Remains Under Pressure

Globally, the industry is under pressure because of the war raging in the Middle East. Industrial Info Resources has been tracking war-related impacts on the global energy sector since fighting began in late February with joint U.S.-Israeli airstrikes on Iran.

According to Industrial Info Resources data, drone damage to the Ras Laffan North and South facilities in Qatar has sidelined about 12.8 million tons of LNG per year and cost operator QatarEnergy some $26 billion to repair.

Industrial Info Resources offers more information on these facilities in its Global Market Intelligence (GMI) Oil & Gas Plant Database, where readers can find details in plant profiles of Ras Laffan North and Ras Laffan South.

Last week, Italian energy company Edison S.A. said it received notification of further delays from Qatar. Edison said that impacts a total of 24 cargo now, accounting for about 106 billion cubic feet of natural gas. Edison signed a 25-year contract with QatarEnergy in 2009 to secure 226 billion cubic feet per year.

Key Takeaways

• Midstream support coming for bloated LNG sector.
• Gas production nevertheless won't match LNG export gains.

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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 verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).