U.S. Feed Gas for LNG Staying Near Record Highs

Summary

October so far has been supportive of U.S. LNG exports with feed gas levels hovering close to record highs. Overseas, meanwhile, Qatar told its clients of further delays in shipping for the super-cooled gas.

Steady Flows Supporting LNG

With global supplies under pressure from the simmering conflict in the Middle East, the amount of natural gas supporting U.S. exports of LNG remain close to record highs, data from Industrial Info Resources show.

Industrial Info in its NATGAS Today report for Tuesday, Oct. 27, showed feed gas levels supporting exports of liquefied natural gas (LNG) are at near-record highs of just over 19 billion cubic feet per day (Bcf/d). Apart from some hiccups due to unspecified issues at the Freeport LNG terminal, October has seen gas levels holding up.

That data matches what the federal government expects for the fourth quarter average. LNG exports, meanwhile, are on pace to increase by close to 6% by next year, should federal forecasts prove accurate.

Industrial Info is tracking new LNG projects and expansions that combine for more than a hundred-billion dollars in investment value. Australian energy company Woodside is working alongside engineering firm Bechtel to build its Louisiana LNG facility, where Industrial Info expects to see construction completed by 2030.

Backed by an estimated $4 billion in investment value, the plant could export as much as 5.2 million tons of LNG per year, data show.

Qatar Extends Force Majeure on LNG; Looks for Alternatives

Meantime, in the other major LNG production hub of the Middle East, the conflict has severely limited exports by damage to export infrastructure. As a result, Qatar may be looking for an offtake agreement with Woodside to secure future volumes from Louisiana LNG. Supplies of LNG booked from the United States would go straight to Qatari customers from U.S. terminals to make up for lost Qatar capacity.

Subscribers can learn more from detailed profiles of Ras Laffan North and Ras Laffan South export terminals in Qatar. Facing a billion-dollar repair bill, those installations could be curtailed for several years.

That follows a Reuters report from last week showing QatarEnergy was in advanced talks to secure at least 3 million metric tons of gas per year from Venture Global.

Venture Global is behind several U.S.-based LNG projects. Its Plaquemines facility is the largest by export volume, according to Industrial Info Resources data. Situated along the Gulf Coast of Louisiana, Plaquemines has an industrial design capacity of 13.5 million metric tons per annum (MTPA).

Elsewhere on Tuesday, Italian energy company Edison said it was informed by Qatar that LNG volumes are delayed.

"QatarEnergy has informed Edison that it will not be able to deliver an additional six LNG cargoes scheduled for the Adriatic LNG receiving terminal in Italy," the company said. "This will effectively extend the overall force majeure period from beginning of April to early December 2026."

For Edison, that means 35 cargoes with a combined 162 billion cubic feet of gas in the liquid form are subject to force majeure, a contractual close freeing a company from its obligations due to circumstances beyond its control.

Edison added that it was able to replace some of those volumes by bringing in LNG from alternate suppliers at its Adriatic LNG terminal.

Industrial Info show the import terminal has a peak regasification capacity of 767.5 million cubic feet per day (MMSCFD), along with 250,000 cubic meters of storage.

The conflict, meanwhile, continues to endanger shipping through the Strait of Hormuz, which carried about 20% of the global maritime trade in LNG before fighting began in late February. On Monday, the United Kingdom Maritime Trade Operations Center reported that a vessel was on fire off the coast of Iraq. There were five similar attacks on shippers last week.

Key Takeaways

• Qatar extends shipping delays for European LNG to December
• Attacks in the Persian Gulf highlight the ongoing risks to LNG shippers

By the Numbers

• 35 cargoes of Qatari-sourced LNG subject to force majeure
• 6% increase in U.S. exports of LNG expected by federal government

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).