The new Plaquemines LNG terminal has got “The Right Stuff” boosting U.S. LNG feedgass, which averaged 15.2 Bcf/d last week, down slightly from the previous week.
Most recently, U.S. LNG feedgas demand has been averaging around 15 Bcf/d up from around 13 Bcf/d in November. The growth is propelled by Plaquemines, the newest LNG terminal. Flows to Plaquemines ramped up last week and hit a new all-time high of 1.82 Bcf/d over the weekend (see chart below). The first nine of 18 liquefaction blocks are commissioning and authorized to take feedgas.
Venture Global gained approvals to commission a temporary gas turbine generator on March 10, which may account for some of the feedgas increase last week, but it could also be the commissioning blocks continuing to ramp online.
In its first-ever earnings call earlier this month, Venture Global said the blocks are performing better than expected, and the full project is now expected to have a peak capacity of 27.2 MMtpa (3.6 Bcf/d) rather than 24 MMtpa (3.2 Bcf/d). Regulators have already approved this capacity uprate.
The peak capacity represents the maximum allowable exports, not necessarily the day-to-day operations. The terminal has 19.7 MMtpa of long-term contracts, but given Venture Global’s desire to market cargoes itself and the uprate, production at the terminal will likely be higher than originally anticipated.
At peak capacity the full terminal would require more than 3.7 Bcf/d, about 1 Bcf/d more than at the contracted level. The terminal could potentially be taking in that much feedgas by the end of the year, according to Venture Global’s cargo estimates.
As we’ve discussed before, the commissioning process can be dicey with many ups and downs and time will tell on whether Plaquemines has “All the Right Moves.” But we know Venture Global is intent on being a longtime dominant player and is clearly making its moves "Step by Step." Check out our blog Takin’ It To The Streets to gain more insight on Venture Global's plans as a public company.
