November 21, 2024 [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 , , feed demand for more exports due in part to supply disruptions and sanctions linked to Russia’s invasion of Ukraine in February 2022.
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 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.
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