U.S. LNG Output Notes New Record With Facilities At Full Capacity

U.S. LNG Output Notes New Record With Facilities At Full Capacity
All six major U.S. LNG liquefaction facilities in operation appear to be running at full capacity as they made a new record for LNG feedgas demand.

All six major U.S. LNG liquefaction facilities in operation appear to be running at full capacity as they made a new record for LNG feedgas demand.

According to S&P Global Platts Analytics data, the new U.S. LNG feedgas demand of 13 Bcf/d was registered on Tuesday, December 21, 2021. This included demand from a seventh facility still undergoing commissioning.

The energy and commodities information provider stated that the trends were expected to continue in the near term, with cold weather across Northwest Europe boosting LNG demand there and even more frigid temperatures in Russia restraining pipeline gas volumes to the continent as Russia keeps more of its supply for domestic use.

Gas deliveries to U.S. LNG export terminals rose about 140 MMcf/d from the previous day, based on nominations for the morning cycle as observed by Platts Analytics.

About 58 percent of the total – 7.56 Bcf/d – was accounted for by the nine liquefaction trains across Cheniere Energy's two terminals, Sabine Pass Liquefaction in Louisiana and Corpus Christi Liquefaction in Texas.

Platts Analytics data also showed that small feedgas deliveries to Venture Global LNG's Calcasieu Pass continued to register on December 21 as commissioning toward startup was ongoing. According to Venture Global, all 18 liquefaction modules have been received at the Louisiana terminal from Italy and set on foundations.

The export value for LNG cargoes loading on the U.S. Gulf Coast 30-60 days forward jumped more than $16/MMBtu to new highs during the week of December 14-21, reflecting the strength of European delivered prices.

The Platts-assessed Gulf Coast Marker for February stood at $54.95/MMBtu on December 21. When compared to the same day last year, that was more than six times higher.

It is worth noting that dozens of LNG tankers were in the Atlantic trying to land in Europe to take advantage of the arbitrage, as delivered prices there were assessed at a widening premium to the Asia spot price.

To contact the author, email bojan.lepic@rigzone.com


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