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Released January 23, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The extreme cold for much of the eastern half of the U.S. is catching up with the energy sector, with data showing a recent decline of about 2 billion cubic feet per day in gas production.
Cold weather advisories on Wednesday stretched as far west as New Mexico, though lows only reached the double-digits. Houstonians woke up to below-freezing temperatures and snow, while parts of western Pennsylvania were below freezing. As much as 10 inches of snow fell on parts of New Orleans.
The arctic conditions already had taken a toll on the dense network of refineries along the U.S. Gulf Coast, or PADD III in industry parlance. As of Tuesday, IIR Energy was monitoring about 30 refineries with a combined throughput of 7.8 million barrels per day (BBL/d) that could be impacted by the inclement weather.
Of note, the Houston Refinery, operated by LyondellBasell (NYSE:LYB) (Rotterdam, Netherlands), reduced rates at a facility designed for 121,000 BBL/d. Few major refinery issues were evident elsewhere, however. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Plant Database can read more in a detailed plant profile.
Elsewhere, the cold weather likely triggered a power outage that shut down all three trains at the export facility for liquefied natural gas (LNG) in Freeport, Texas, operated by Freeport LNG. The facility has faced a bevy of problems in the past. Subscribers can learn more from a detailed plant profile.
An over-pressurized pipe triggered an explosion and fire in June 2022 that hobbled Freeport for much of the year. Problems with some of the electric motors meant the plant was performing below peak capacity for much of 2023, while freezing temperatures in January of last year left it facing technical challenges for weeks.
Freeport can receive up to 2 billion cubic feet per day (Bcf/d) of natural gas, primarily taken from the inland shale basins. Industrial Info's data show the facility receives much of its gas from the Texas Eastern Transmission (TETCO) pipeline, which itself has a history of accidents that suppressed flows into the system.
Data show TETCO volumes into Freeport were stable as of Tuesday, though feedgas into the terminal was largely absent by Wednesday. Total deliveries were about 14% of the peak capacity.
All the functioning LNG terminals were operating at about 75% of their capacity, with Cheniere Energy Incorporated's (NYSE:LNG) (Houston) export facility in Corpus Christi also showing decreased activity as of Thursday due to planned work at a compressor station. Exports could be impacted by various port closures in the U.S. south. The Port of Houston closed for two days starting Tuesday because of the bad weather. Subscribers can learn more from a detailed plant profile.
IIR Energy reports from early this week, meanwhile, pointed to operational issues in the various shale fields, with a high potential for frozen upstream infrastructure. Industrial Info's data show Texas, home to the Permian and Eagle Ford shale basins, saw production dip by 700 million cubic feet per day by Tuesday.
Production declines were partially offset by strong flows from Canada. Gas exports as of Tuesday were above 10 Bcf/d for the second day in a row, though that could change in response to proposed trade tariffs from U.S. President Donald Trump.
The cold weather in the U.S. south should stick around for a couple days, though temperatures should return to seasonal norms by the weekend.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
Cold weather advisories on Wednesday stretched as far west as New Mexico, though lows only reached the double-digits. Houstonians woke up to below-freezing temperatures and snow, while parts of western Pennsylvania were below freezing. As much as 10 inches of snow fell on parts of New Orleans.
The arctic conditions already had taken a toll on the dense network of refineries along the U.S. Gulf Coast, or PADD III in industry parlance. As of Tuesday, IIR Energy was monitoring about 30 refineries with a combined throughput of 7.8 million barrels per day (BBL/d) that could be impacted by the inclement weather.
Of note, the Houston Refinery, operated by LyondellBasell (NYSE:LYB) (Rotterdam, Netherlands), reduced rates at a facility designed for 121,000 BBL/d. Few major refinery issues were evident elsewhere, however. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Plant Database can read more in a detailed plant profile.
Elsewhere, the cold weather likely triggered a power outage that shut down all three trains at the export facility for liquefied natural gas (LNG) in Freeport, Texas, operated by Freeport LNG. The facility has faced a bevy of problems in the past. Subscribers can learn more from a detailed plant profile.
An over-pressurized pipe triggered an explosion and fire in June 2022 that hobbled Freeport for much of the year. Problems with some of the electric motors meant the plant was performing below peak capacity for much of 2023, while freezing temperatures in January of last year left it facing technical challenges for weeks.
Freeport can receive up to 2 billion cubic feet per day (Bcf/d) of natural gas, primarily taken from the inland shale basins. Industrial Info's data show the facility receives much of its gas from the Texas Eastern Transmission (TETCO) pipeline, which itself has a history of accidents that suppressed flows into the system.
Data show TETCO volumes into Freeport were stable as of Tuesday, though feedgas into the terminal was largely absent by Wednesday. Total deliveries were about 14% of the peak capacity.
All the functioning LNG terminals were operating at about 75% of their capacity, with Cheniere Energy Incorporated's (NYSE:LNG) (Houston) export facility in Corpus Christi also showing decreased activity as of Thursday due to planned work at a compressor station. Exports could be impacted by various port closures in the U.S. south. The Port of Houston closed for two days starting Tuesday because of the bad weather. Subscribers can learn more from a detailed plant profile.
IIR Energy reports from early this week, meanwhile, pointed to operational issues in the various shale fields, with a high potential for frozen upstream infrastructure. Industrial Info's data show Texas, home to the Permian and Eagle Ford shale basins, saw production dip by 700 million cubic feet per day by Tuesday.
Production declines were partially offset by strong flows from Canada. Gas exports as of Tuesday were above 10 Bcf/d for the second day in a row, though that could change in response to proposed trade tariffs from U.S. President Donald Trump.
The cold weather in the U.S. south should stick around for a couple days, though temperatures should return to seasonal norms by the weekend.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
