U.S. LNG export plant feedgas seen rising after maintenance reductions

The amount of gas flowing to U.S. LNG plants edged up after falling to its lowest since February due to reductions at a couple of Louisiana plants and some pipelines serving them.

As companies wrap up maintenance work, LNG feedgas was on track to rise to 9.5 billion cubic feet per day (bcfd) on Thursday after dropping to 8.5 bcfd on Monday, according to preliminary data from Refinitiv.

That low was the lowest for LNG feedgas since February when extreme weather froze gas pipes and knocked out power to millions of customers in Texas.

Refinitiv said gas flows to Cheniere Energy Inc’s Sabine Pass were down to 2.8 bcfd on Thursday from around 4.0 bcfd in late May, while flows to Cameron LNG’s plant were down to 1.3 bcfd on Thursday from around 2.0 bcfd in late May.

Cameron said its facility was “undergoing maintenance with normal production levels expected ... before the end of the week.”

Traders said Cameron was dealing with a heat exchanger issue possibly on Train 3.

Cheniere, which had no comment, told customers in a notification that compressor maintenance on the Creole Trail pipe, which provides gas to Sabine Pass, would reduce flows from June 7-11.

So far in June, gas flows to all six of the big U.S. LNG export plants has slid to an average of 9.7 bcfd, down from 10.8 bcfd in May and an all-time high of 11.5 bcfd in April.

But with European and Asian gas prices trading over $10 per million British thermal units, versus just $3.15 for U.S. gas at the Henry Hub benchmark in Louisiana, analysts said they expect buyers around the world to keep purchasing all the LNG the United States can produce.

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