U.S. Data Show February Was a Record-Setter for Natural Gas

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Data to February show U.S. exports of liquefied natural gas (LNG) were more than 17% higher than year-ago levels and the highest since data collecting began, the federal government said.

The U.S. Energy Information Administration (EIA), the data arm of the Energy Department, in its latest monthly natural gas report said LNG exports in February were 17.7% higher than last year at 14.6 billion cubic feet per day (Bcf/d).

The United States exported LNG to 30 different countries that month, with volumes reaching the highest point since data collecting began. The United States exported its first batch of LNG in 2016 and established itself as the world leader in 2022.

This year's export levels were supported by the startup of the Plaquemines facility in Louisiana, operated by Venture Global LNG (NYSE:VG) (Arlington, Virginia).

Drawing largely from the nearby Haynesville play, Plaquemines took in its first batch of 100 million cubic feet of natural gas for liquefaction in December. The operator reported that 29 vessels laden with LNG left the facility during the first quarter.

By April, data from IIR Energy show Plaquemines running well above its peak design capacity of 1.89 Bcf/d. All eight terminals took in around 16 Bcf/d in feedgas last month.

Though exports are a few years out, two facilities--Delfin LNG and Golden Pass--have secured permit extensions from the government already this year, while Commonwealth LNG has received a new permit. The extensions were necessary due to delays such as those experienced during the COVID-19 pandemic.

The United States is also a net natural gas exporter, despite drawing in a net 5.5 Bcf/d from Canada. EIA data show natural gas exports averaged 24.5 Bcf/d in February, a 10.3% increase year-on-year and the highest level since 1973.

The EIA added that dry natural gas production decreased in February relative to year-ago levels for the first time in three months. Rough winter weather had curtailed some production earlier this year.

Seasonal maintenance at plants and midstream networks are currently curbing natural gas output, though federal data point to an expansion next year. Total inland natural gas production averaged 110.4 Bcf/d last year and is expected to reach 114.8 Bcf/d by next year.

Some of that increase is due to the maturation of inland shale basins. As the pressure changes due to production, some heavier hydrocarbons stay trapped in subsurface pores while lighter molecules such as natural gas move to the production well.

The Appalachia basin covering parts of Ohio, West Virginia, Pennsylvania and New York is the largest gas producer by far, though the oil-rich Permian is now yielding more gas. Appalachia gas production increases by barely a percent next year to 35.9 Bcf/d, while Permian gas production is on pace to increase by nearly 3% to 28.4 Bcf/d in 2026.

Supplies may be outpacing demand, however, as the global economy is expected to shrink in response to protectionist trade policies embraced by U.S. President Donald Trump. A subsequent downturn in commodity prices, meanwhile, has taken a bite out of corporate profits.

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).