US LNG feedgas on track for 10-month high as flows rise to Louisiana Plaquemines plant
Adds background and context at paragraphs 11-13
By Scott DiSavino
Nov 20 (Reuters) -The amount of gas flowing to the seven big operating U.S. liquefied natural gas (LNG) export plants was on track to rise to a 10-month high on Wednesday, according to data from financial firm LSEG.
Feedgas was up in part as flows to Venture Global LNG's Plaquemines plant in Louisiana were on track to rise to a record high for a second day in a row on Wednesday as the company tests equipment at the plant.
Plaquemines will be the country's eighth big LNG export plant once it starts producing LNG, which analysts have said could happen any day now.
LNG exports have been the biggest source of gas demand growth in the country in recent years.
The U.S. became the world's biggest LNG supplier in 2023, ahead of recent leaders Australia and Qatar, as much higher global prices NGc1, TRNLTTFMc1, JKMc1 feed demand for more exports due in part to supply disruptions and sanctions linked to Russia's invasion of Ukraine in February 2022. NGA/ NG/EU
U.S. LNG feedgas was on track to rise from 14.1 billion cubic feet per day (bcfd) on Tuesday to a 10-month high of 14.5 bcfd on Wednesday.
One billion cubic feet can supply about five million U.S. homes for a day.
In addition to Plaquemines,Wednesday's increase in gas flows was due to rising feedgas at Cheniere Energy's LNG.N 4.5-bcfd Sabine Pass in Louisiana to a six-month high of 5.1 bcfd on Wednesday. Sabine is the biggest U.S. LNG export plant.
LNG plants can pull in more gas than they can turn into LNG since they use some of the gas to fuel equipment.
Plaquemines was on track to pull in a record 50 million cubic feet per day of gas for a second day in a row on Wednesday.
The company's LNG tanker Venture Bayou is now docked at the Plaquemines facility, according to ship tracking data from financial firm LSEG, and analysts say the Venture Bayou could be used as part of the commissioning process.
Venture Global did not immediately respond to a request for comment.
Plaquemines is already over budget by more than $2.35 billion and is expected to have an extended commissioning period that could see long-term customers not getting any LNG until 2026.
The first 1.8-bcfd phase of Plaquemines is expected to enter service from 2024-2026, while the second 0.9-bcfd phase was on track to enter service in 2025-2026. Venture Global said recently in financial documents seen by Reuters that it expects Plaquemines to cost around $21-$22 billion.
Reporting by Scott DiSavino in New York, additional reporting by Curtis Williams in Houston, Editing by Louise Heavens, Elaine Hardcastle and Chizu Nomiyama
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
