U.S. Feed Gas for LNG Highest Since April

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

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Summary

Feed gas running to operational terminals for exports of U.S. LNG are up 2 billion cubic feet from last month's average. A tentative truce has so far led to a trickle of LNG out of the Strait of Hormuz.

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Freeport Recovery Lifting LNG Activity

With global shipping lanes still under threat, the amount of feed gas supporting U.S. exports of liquefied natural gas reached the highest level since April, data from IIR Energy show.

IIR Energy in its NATGAS Today report for Tuesday showed the amount of feed gas supplying operational export terminals reached 18.5 billion cubic feet. That's 2 billion cubic feet above last month's average for the highest level since April.

The beleaguered Freeport LNG facility in Texas, prone to mechanical issues, helped support the increase in feed gas levels. Recovering from regular maintenance, feed gas to Freeport is up 0.7 billion cubic feet per day (Bcf/d) on average from month-ago levels, indicating all three trains are up and running.

Golden Pass, a newly-minted facility on the Gulf Coast, saw feed gas levels rise 0.5 Bcf/d this week.

Golden Pass, a joint venture between ExxonMobil and QatarEnergy, entered the commissioning phase, with feed gas running at around 303 million cubic feet on February 19.

According to Industrial Info Resources data, there is $3.8 billion worth of investment at Golden Pass LNG, which will eventually churn out 5.2 million metric tons per annum (MTPA) of LNG. Industrial Info Resources offers more information on these developments in its Global Market Intelligence (GMI) Oil & Gas Project and Plant Databases, where readers can find details--including construction schedules and necessary equipment--in a profile of Golden Pass, and in detailed project reports.

That's supporting a supply-side deficit from the war in the Middle East. On Monday, a tanker laden with LNG reported it made it through the Strait of Hormuz bound for India, but shortages remain due to drone damage in Qatar.

Qatar is one of the world leaders in LNG exports, but it could take five years and major investments to bring its capacity back online. Despite the damage, however, QatarEnergy signed memoranda of understanding for supply and cooperation with both Egypt and Syria since the war began.

U.S. LNG Footprint Expanding

Elsewhere, more facilities are possible in the United States. Though a lengthy pipeline through the difficult arctic tundra is required, the Alaska LNG facility could offer alternative routes to Asian economies.

Too many LNG commitments could lead to supply-side issues in the United States. While still the world leader in production, the annual pace of expansion is on the decline. Inland natural gas production last year averaged 115.5 Bcf/d and could increase by 3.2% to reach 119.3 Bcf/d on average. By next year, growth slows by 2.7%, though levels still reach 122.6 Bcf/d should the forecast prove accurate.

Outside the continental United States, the grid in Puerto Rico could get support from LNG. Clean Energy Fuels Corp. announced Tuesday it was tasked with the design and installation of two LNG fueling systems for gas-to-power applications.

"By delivering modular LNG fueling infrastructure, Clean Energy allows customers to transition to more dependable energy systems and can deliver both primary and backup power across diverse applications, including manufacturing facilities, hospitals, data centers, port operations during LNG marine bunkering, industrial zones, and power generation sites in grid-constrained markets," the company explained.

Clean Energy Fuels did not specify the origin of the LNG. Puerto Rico's power grid was nearly wiped-out following Hurricane Maria in 2017.

By the Numbers

• 18.5 billion cubic feet in feed gas highest since April
• 2.7% annual growth in U.S. natural gas production marks a slowdown

Key Takeaways

• Feed gas levels continue to support U.S. LNG exports.
• LNG could help Puerto Rico's power grid.

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).